This video from BarCampLondon3 is of a session by Leisa Reichelt on how to conduct basic prototyping, user research and usability testing for your service or product, relatively easily and cheaply, and still get decent results.
Obviously the main focus is on web services, with an emphasis on obtaining helpful information on core areas (i.e. your proposition / idea, the structure and basic information architecture, how well you are communicating the key concepts behind your product, and how well you are getting its benefits across to users as well as how to improve the user experience), through simple but effective user research - and on a low budget! Again, the accompanying slides are also below.
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