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I am looking to build ruined buildings so my friends and I have more to play with than hills and some trees. What I am unsure of is the best materials to use for created such buildings. If anyone could give me an idea of what to use and were to get it I would be very grateful.

It depends on how much you are willing to spend art stores sell foam core by the sheet depending on the type and thickness it could run $40 for a 4'x8' sheet.
But Walmart sells smaller bits in there school supply area for science displays that work quite well for buildings. And if you are not picky model railroad shops have buildings that can work as well then there is this place http://www.davesgames.net/wfrp2/ hope that helps.

You can often get thin sheets of insulation foam from DIY shops too. Not sure what you have in the US in terms of stores, but here you can get foam from B&Q which is often a lot cheaper than buying from hobby shops.