Make has an article on an impressively low cost desktop CNC router built by Norbert Heinz [makezine.com], largely from scrap parts.
Using dirt-cheap chipboard, an Arduino, motor breakout board, angled aluminum, and a few gears and servos pulled from a tray-style computer CD drive, Norbert Heinz has created an unbelievably inexpensive CNC router — the total cost for Heinz was around €150 (or about $160 in US dollars).
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During testing, the machine was able to engrave wood, glass, plastic, aluminum, and Depron foam with ease and surprising precision
The project page [homofaciens.de] has complete instructions and source code, and there is a detailed Youtube video [youtube.com] showing the construction and operation of the machine.