I've seen old egg carton things used on walls before. Go down to your local brunch place and ask to pick through what they toss out for ones that aren't to messy, that could work.
Another trick I heard about but don't really know how effective it is was from a landlord of mine. He hung sheet metal in the walls of a duplex to cut down on the noise between units. It seemed to work well as lived in the place for 2 years, was noisy with 5 other roommates (6 am bedtime type noisy) and never got a complaint or heard the neibours. The important thing about this design is that the metal is heavy and free to move (hung only at the top).
My gut says use a first layer that can swing, thick blankets are a good idea, to cover the egg cartons.
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