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Public transportation in Budapest is run by BKV, which has a useful English-language site. As of February 2007, single tickets cost HUF 320 (HUF 400 if you buy them on board - note that tickets are sold by the driver only on selected routes). If you intend to travel a lot, it's a better option to get a 24 hour travel card (HUF 1550) or a discount coupon book (10 tickets for HUF 2800) or a 72 hour travel card (HUF 3850). Information about tickets and prices can be found on BKV's ticket and pass information site. One ticket is good for only one journey; anytime you take a new vehicle, you should validate another ticket.
Fines for tavelling without a tciket on a Budapest Public Transport Service: if you're caught without a valid ticket by a controller you are to pay a fine which is currently 6000 HUF paid on the spot.
Another possibility is Budapest Card, which allow free public transport and discount at museums and restaurants.
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