My friends and I do it every year with an �8 budget. I managed quite well with the help of Ebay last year. Shrek 2 on DVD for �4.50, a little beaded squirrel shaped purse for �2 both including postage and a jelly bean pooping reindeer for �1.50 which you can get from BHS and Harpers Bazaar.
This year I have a vintage bag which I am beading and haven't thought what else yet.
Most of my friends buy earrings and make-up but I always spend ages on the present