I have an old, brown hard-side suit case that i've adapted to camera/lens storage. I bought 3" sponge/foam and made the appropriate sized cut-outs for the my various lenses and extra 35mm bodies. It works a treat and it offers a high level of drop/impact protection - all for about $15 US in supplies (suit case bought at Good Will, sponge/foam bought at a fabric store).
In a lowepro zippered lens case or in a cloth/padded lens wrap. At home, they rest on padded small egg crate styled foam pads in drawers.
You can often pick up used, but clean, camera bags at yard sales, charity outlets, flea markets, etc. they're cheap, they protect the equipment, and you can arrange the internal compartments to suit the sized you need. I hang a little cardboard tag on them to tell me what's inside.
I've got some 7 Nikon and 3 Contax bodies in working order (they're all fitted with lenses), and some10 additional lenses, primes but for one zoom. They stand, resting on their lens hoods, on a bookshelf in the study, together with an assortment of lens and bodycaps. It's getting crowded there. I'm moving in a few weeks time and will create some space on that shelf :-)
Just make sure the asbestos is properly sealed in. It's only dangerous if if starts to break up, so you're at no risk providing the metalwork is solid around it. I've been following a group rebuilding a railway carriage after asbestos (used as insulation in the 1950s) was removed from the sides. It was fine until the outer body skins developed corrosion holes, at which point they had to call the hazmat team in.
Ebay gear sales can be a source of neat small bags. I bought a near mint MX last year which came with an external light meter, mint and boxed generic flash...and most usefully of all a neat little black leatherette shoulder bag. It's just big enough for an MX, 28/50/135mm lenses, a small flash and a couple of rolls of film, nestles under your arm when carried and can be slipped under the car seat if you have to stop for a few minutes and don't want to take it with you.