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Kuala Lumpur's Chinatown is 'the' place for cheap rooms and cheap (although probably fake) goods of all description. The center of all the "action" is Petaling Street, which is mostly covered and serves as a thriving street market. There are goods of all description, especial clothes, shoes, music and movie disks, as well as a goodly number of food stalls to slake that hunger you built up shopping. The cheap hotels and cheap food make the area popular with backpackers, but it's worth a look.
Petaling Street in Kuala Lumpur's Chinatown
The easiest way to get to Kuala Lumpur's Chinatown, assuming you're not availing yourself of the cheap hotels, is to take the train to the Pasar Seni station. The station is close to the Central Market, which you can visit on your way to Petaling Street.