I can really recommend this case, especially for the price:
RED LEATHER CASE COVER POUCH FIT MOTOROLA MILESTONE on eBay (end time 27-Apr-10 18:21:48 BST)
The red is a bit deeper than in the picture, and I really like the pull tab. It was exactly the kind of thing I wanted and it works really well for me. That guy has a black one up on there too for all you fellas out there :P