Quote: "Trust me I know how to make a movie cheap "
What you have said is to just use what you have already bought, this isn't necessarily making it cheaper because you have already forked out the money for all of these things beforehand.
This is how I imagined they had done it anyway when i heard of the $200 price limit, it was clear they already owned the cameras anyway. Seeing as you couldn't possible hope to get a decent camera setup for $200.
If you check the description;
Quote: "GEAR PROVIDED BY Brandon Rickert (b_rik) & Anthony Boone (Fatal)"
It seems it's either rented or done as a favour, which would make the budget more than possible.
The thing that bothers me about the budget, is how people are concentrating on it. I can say i've made a complete 3d film for nothing, because I already own a digital camera for reference images, a car with a full tank of petrol for getting to the places I need to take pictures of, a pencil and a sketchbook for concept art and a copy of 3dsmax for the actual animation and modelling. Because I already own all of this stuff, my costs equal £0. I know how to work on a budget!