In case you've been living under a rock for the last couple months, there is an amazing modification for the Steadicam Smoothee, a cheaper consumer version of the popular merlin stabilizer from SteadyCam made to fly iPhones/iPod Touch, GoPro Hero/Hero 2 cameras, Flip Minnows, etc. It uses the same gimbal as the Merlin stabilizer, has knobs to dial in precise balance, and although a cheaper (hard plastic/aluminum) build, for a camera under 3lbs it performs flawlessly with just a simple mod.
This will run you between $150-$180 depending if you buy it on sale at B&H until the end of the month or buy it on eBay, where I even picked mine up for under $150 shipped (in Canada).
So with the build parts you could have yourself a stabilizer almost as good as the $800 version for under $200 (modified) provided you don't intend to fly anything over 3lbs.
See the following links:
Can you modify a Steadicam Smoothee
DIY Steadicam Smoothee Mod – Cheesycam Baby Merlin
Steadicam Smoothee Modified – Baby Merlin
GH2 on Baby Merlin (modified Steadicam Smoothee)