You can usually get small amounts of free sawdust at lumber mills or woodworking shops.  One way to make paper clay is to tear strips of paper, pour hot water on them and let it sit a day or two, then run the stuff in little bits through a blender or food processor.  You can also work away at it with your hands or use a drill with a drywall mixing attachment for larger batches.  After it's broken up and mooshy, I usually drain it through a strainer, then add some white glue and wallpaper paste flakes and work at it with my hands until it's like clay.  I've never made a doll, so I haven't a clue how to do that.  If you're dad is a neat freak, be careful not to turn everything purple if you're using newspaper.

While you're at Goodwill, see if they have any styrofoam balls for heads.  You can just mold mache pulp over it, or wrap paper strips over it.  You might want to insert some wire into it (before or after) so you can attach it to a body.

One way to make a sword handle is to cut your handle silhouette out of cardboard, then build it up with mache pulp mixed with adhesive.

I've also seen boxes of wallpaper paste at Goodwill... occasionally.

Sue

Perhaps you've made the sword by now but my method would be a base of cardboard (as already suggested) but I wouldn't use pulp.  Use quite a thick carton cardboard (not corrugated) in a few layers.  You can contour these to be thicker in the centre of the blade.  Then laminate paper over it to as many layers deep as it needs for the strength you require.

As for doll's head, you could try the laminating method but build your shape using an egg and plasticene - see my article on using eggs.
DavidO
(dopapier)