To start
(Buildings)
http://www.dakkadakka.com/dakkaforum/posts/list/459985.page
(Lava gaming board, still works for terrain)
http://www.dakkadakka.com/dakkaforum/posts/list/243963.page
(Hills that look like hills)
http://www.dakkadakka.com/wiki/en/Making%20Dynamic%2C%20Craggy%20Hills
What you want:
-Hot glue gun
-Hot foam cutter (verrrryyyy slow but good for detail/fine work
-Perhaps a blowtorch & knife. Heat the knife up (I use a chisel with a sharp edge) and it'll cut through foam like it was butter BUT it makes a lot of fumes and tends to somewhat damage the surface if you want really fine work.
Always have a fire extinguisher on hand.
-Box cutters for when [Metallica] Nothing Else Matters [/Metallica].
-White glue.
-Foam (I'd say a large sheet of insulating foam, the hard blue stuff not the white ones that leave little balls of foam when you scratch/break it)
-Plaster
-Cheap acrylic craft paint.
Note that many spray paints will will somewhat melt foam, latex paint is safe though. Cheap way to seal the foam is to water down white glue and brush it over the exposed foam then spray.
I tired the last link and you really need to plan ahead on how it'll look or it'll turn out all fugly. For the first link I'd use corrugated plastic boards like what you'd see for science fair displays myself.
-edit- Oh, and base with some 1/8
MDF board or whatever is cheap and on hand. Jigsaw's are good for cutting such material.