Hehe. PCFormat is an excellent source for things to use.
I've got Bryce 3D from PCF and also Vue D'esprit. Both are excellent for making 3D backgrounds.
I use paint shop pro 4 for other backgrounds, but I usually get other people to make them!
For music I use Cakewalk Express
And for the engine, I use QBasic, AGS or Delphi.
Very low budget needed, i.e. £5!