Rice would be super heavy and expensive and you could not get it wet... They sell packing peanuts at office supply stores, they are perfect for the job.
It would be awesome to make your own bean bag chair. I'm trying to think of what the stuff that's in the store bought ones are called. Does anyone know?
http://www.threadbanger.com/decorityourself/episode/DEC_20090819 Here's a video tutorial from Threadbanger.com...
This is sorta off topic but I got this huge bean bag chair. It cost around $600 but it's totally worth it. It's like 5 or 6 feet in diameter.