I was told by someone who self published a couple years ago that those plastic spiral binder things you can buy at local business supply was the cheapest binding.
You could put up 1 chapter to 1/3 of the book if you didn't want to put the whole thing on the web. A publisher is going to want at least 2 or 3 chapters and an outline in any case. OK known authors might only have to send in that little.
I'd suggest writing a letter asking for submission guidelines before actually sending in work. You'll want to gaurd against the publisher who might leave your stuff in a stack for 3 years before doing anything with it. Some get upset if you send it to more than one at a time.
You could even consider selling book on cd, but those are even easier to copy than a website. If you go that route you might want to make each one a sign and numbered copy. Numbering the first 500 isn't all that painful and by then a publisher might want second printing.