To see how to paint action figures see my instructable called "how to paint action figures".
Every year my wife and I make Christmas ornaments together. Usually we make them from scratch but this year we had the idea of painting old action figures. This is the result.
Good places to get action figures for cheap is second hand stores, eBay, or less cheap but nice and easy is Walmart.
Just a note if you don't go to my other instructable make sure you know to use acrylic paint and never enamel on action figures.
Have great holidays!