I've bought an Atmega32A from Farnell in the UK. It cost me about £4. I have it on a breadboard and bootloaded it with an Arduino Uno. It works fine apart from digitalRead not working for some reason.
These links should help you get going with the bootloader.
http://www.avrfreaks.net/index.php?name=PNphpBB2&file=viewtopic&t=101227