iLuv's leather case for the iPad offers quality protection without breaking the bank. Outside it's textured leather while the inside is soft suede. Thanks to a little Velcro and clever design, the case doubles as a stand too.
If you're looking for some budget iPad padding, Kensington's reversible neoprene sleeve sells for only $10. It fits the iPad perfectly and does double duty as a 10" netbook sleeve.