The cheap tickets, depending where you are coming from... Easyjet is best from the U.K.. flnd the cheapest flight you can into London, and take easyjet from there... Check out Ryanair from Dublin also...
And maybe you can find a package or special promo/offer from your point of departure...
Once you are in Madrid use the public transportation... There is a great bus and subway service that covers most of the city. (www.ctm-madrid.es)
If you are going anywhere else, buses are your least expensive transportation, trains the next best (check out www.renfe for train schedules)
As to food, find yourself some good supermarkets (Mercadona and Supersol are good chains) and cook at the place you are staying, or eat "Tapas" at the cafés. a tapa should never be more than 1 euro, and with 2 or 3 at the most you have eaten a fair meal.
October is a grest month to go to Madrid, it isn't really cold yet, and the trees with their autumn colours look wonderful!
Have fun, Madrid is a great city to visit!
(take a look in www.esmadrid.com they have a page in english and you'll find everything you need to know!)
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