When I left Uruguay 2.5 years ago, applying for residency was changing a bit. Apparently, nowadays, you need to show you have "enough income to support yourself". The people I know say that's usually around $1500/month. Also, expect it to take at least 18 months to finally complete your residency. It took over 2 years for some people I knew. However, you can still live there while your application is in process (no visa runs needed).
If you've been reading anything that says it's "cheap" to live in Uruguay, it's probably several years out of date. Inflation seemed to be around 15% a year. Personally, I was spending about $2000-2500/month to live there by myself, and I wasn't living extravagantly (other than living in a decent neighborhood).
Uruguay doesn't manufacture much of anything, and imported goods have a 60% duty, along with the standard 21% IVA (Value Added Tax). So, electronics are about twice the price of what you'd pay in the US.
It's also not a very entrepreneurial place. There is some software development there, which can have some tax advantages. But prepare yourself for a very bureaucratic place, where things don't move quickly, and taxes/fees are high.
Uruguay may be a place you'd end up loving, but if you base your views about it on what you've read from International Living's website, you're going to be in for a big shock.