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Just found this on youtube. It's a nice channel for low-budget movie makers, I must say. Anyhow, this video is really good.
http://www.youtube.com/watch?v=6NDsEFy5Iww

Well that person needs to work on keeping horizon flat and using a huge wide lens like that is kind of cheating in that it reduces the movement somewhat. If your tripod isn't too heavy you can basically do the same thing. Like anything expect to do a lot a lot a lot of practice to get something useable.
But if all you have is $15....
The problem with all these similar things is that you have to hold them. The idea of the Steadicam apparatus is to touch it as little as possible and let the arm and gimbal do the work.

(I am a Steadicam operator for my job so feel free to hire me or ask questions)

Haha, I don't really do videos as such, but lately I've been interested in shooting short documentaries in - you guessed it - low budget. This came across as fascinating to me for before this, I did not even know there was something such as a steadicam!
But I'll ask you questions if I have any. Thank you!

Basically what this and similar ideas do is add some weight and better places to hold a small camera which does make more inertia so the camera moves less. But it is still handheld. Not saying these don't have their place.
Now that you know about Steadicam, you will see it everywhere.