For over a year now, we've been working on developing a cheap, yet stable and easy to use autonomous UAV solution. You can find a subset of what we have been working on described on this page on the Paparazzi Open Source Autopiliot Wiki page.
Our goal is to provide an entry level system for people beginning with autopilots for a total cost well under 1000Euro. At this pricepoint it should be well within reach of casual hobbiests, beginners and for educational purposes.
A prototype of the plane can be seen above. The final wings will be made out of EPP, and the plane itself will look better. It does fly great, and we hope to achieve flight times of up to 1 hour, and we will add wireless video transmission options among others.