Im looking to go as cheap as possible.
Honestly, this is not a good way to begin a turbo project.
I have read a tight 22 RE is good for 110 HP? What can I expect from the stock (5psi) turbo boost?
i think the accepted factory figures for flywheel hp are:
22R: 96 hp
22RE: 116 hp
22RTE: 136 hp
I am also told the stock ECU will work. is this ture?
As has been mentioned, you need the turbo injectors, ECU, and AFM.
are aftermarket ECUs available for under $500? I know my laptop can run the 5.0 for $350.
The only aftermarket ECU in that price range would be the MegaSquirt, which is a DIY-standalone system. Great system, but not plug-and-play for the RTE, as you need to swap over to GM sensors. There are a few guys running MegaSquirt systems on the 22RTE mailing list, so you may be able to find some tuning maps to get you started, but this is the sort of system that requires a lot of "initiative" from the user, and apart from the user community you will be on your own.
From my own experience (I'm the guy with the turbo site mentioend earlier in the thread), I would suggest sticking with the stock EFI components and modest boost (less than 8 psi), especially if you are on a budget. The turbo motor can make a fair amount of power, but it lasts a lot longer if you overbuild the [censored] out of it -- forged pistons, quality gaskets, head studs, balance/blueprint, etc. Or stated another way: it is easier to make power than keep this motor healthy and happy, especially if you've increased the boost. My simple advice would be to do a quality rebuild and install a complete 3" exhaust, including either a 3" or 2.5" downpipe.
Bruce Hawkins makes a 2.5" downpipe for the stock CT-20. This + a 3" cat and cat-back exhaust will do wonders for this motor's performance. increase the boost to 8 psi and you will be able to have fun and stay fairly reliable. Once you venture above 9 or so psi you will be pushing the limits of the stock injectors, and this is where things get expensive.
Anyway, that's my .02 cents...
-Jeff