Mostly using NOS and other ebay/craiglist/co-op finds. There are a number of good parts going for $10-15 that I am watching. Just picked up a Shimano crankset for $25 including the shipping with a 44T chain ring. Plan on using friction shifting, either bar end or downtube.

Wheels will be the tricky part. If I can keep the rest under budget, it should be easier. I know you can find some decent wheels/sets and rims/hubs on Ebay. Might try my hand at wheel building.

I need to figure out my frame sizing in the coming weeks and keep an eye on nashbar's sales.

I think part of the reason I can (or think I can) keep this under $500 is I am not concerned about super high end parts. Still going to be riding this a local college and other parts of town where inside storage isn't available. Part of the appeal of a no brand bike.