Grab up a gypsy lute and a mistmoore drum for 50-100p each as soon as you can afford them (probably lute first for better regen). Banded armor should hold you just fine, or even bronze if you have the strength to use it and not be encumbered.
As far as bard stats, hp/ac/resists are a safe bet since survival > all. Throw in some str to boost your carry capacity so you can equip plate without being encumbered and you're pretty set.
There are 2 drops from upper guk from
the froglok warden that are dirt-cheap because they are bard/rogue only and have pretty good stats. I've seen them each in the 20-50p range. Also,
Clawed Knuckle-Ring are only 20p or so and an awesome investment for a low/mid level character.