We have had some success with making cheap shoot, no-shoot training targets by downloading pictures of guns, knives, badges, cameras, cell phones, Coke cans, etc, and blowing them up to life size. Paste some of these on a shilouette target and make up your own scenarios. If you have access to a copier (such as at work, for example

) you can also copy your open and closed hand while you are making hundreds of copies of other stuff and make up plenty of challenging scenarios.
And as for packing materials, we are working on a target that falls when hit in a vital area. We use the little plastic air-filled bags that are used to ship stuff. We're working on a target that has a holder in the head, chest, or hips that will hold the target up with one of these (free) bags, and will fall when it's popped. Not 100% yet...