Have a look at this... its a good idea I think. http://m.instructables.com/id/How-to-make-a-robot-gripper/

What's it got to pick up? When you say cheap, how cheap? Bear in mind you will get what you pay for. You could build a gripper for the cost of a servo but it wouldn't be worth the cardboard it's made of.

@AAmeralis has posted his claw/arm design, it'll be worth having a look and possibly using some of his ideas. I think it's all covered in the original (huge) Lexi topic.

By cheap I mean the cost of the servo and then low cost materials used to make it.

@vhs896 I have seen this. Its a good idea but the size of it ruins it. It will be moderately sized. 3-6".

Aameralis, I guess more so i'm looking for ideas so what you come up with is good to post.

http://jjshortcut.wordpress.com/2010/04/19/my-mini-servo-grippers-and-completed-robotic-arm/

vhs896, this is actually pretty much what I wanted! Thanks! Although, I'm still open to suggestions.

lol, it's the stuff i have been looking at for ideas