Question
My husband and i built a house last summer on a 1.5 acre lot that backs up to a creek.  The back 2/3 of the lot is wooded and we had a friend bring over some large equipment to make a walking trail to the creek. Part of this trail is rather steep (drops approx. 30 feet) so our friend carved stairs about 3 feet deep each. Currently these stairs are just South Carolina red clay and thus a muddy mess. Also the dirt that was moved is now just piled on either side of the trail. We would like put some landscaping in place to prevent erosion and also look somewhat natural. We have considered single ground mulch, railroad ties, flagstone for the path. Really not sure about the banks of the trail - they are steep too (continue mulch, plant some vines, shrubs, etc?). We dont mind doing some work to save some money. Any suggestions you have would be greatly appreciated! We are in zone 7b/8a. Thanks so much!!

Answer
For landscape plant ideas, here is the link form Clemson University for plants that work best in you area:  http://www.clemson.edu/extension/hgic/plants/landscape/

As to the piles of dirt, I抎 suggest you spread it out as much as possible to create more natural looking berms and as you suggested, plant with a groundcover (see link, above).  For the short-term, and a quick & cheap solution to control mud, I抳e used straw (not feed hay!).  You can get it any feed store for about $7-$10 a bale, and a bale covers about 300 square feet.    

Stairs are a great idea for taking up the grade on the pathway, and it seems you抳e considered a few options.  I抎 suggest my favorite, larger rocks, sometimes called 揵oulderscaping?  These, in combination with thicker ledge stone steps (most flagstone is too thin) make for a handsome set of stairs.  

Before responding to your question, I抳e been looking on the internet for examples to share匧imited luck, but here are few:
http://www.hellotrade.com/limestone-products/product.html

http://www.diynetwork.com/how-to/how-to-build-a-dry-stack-stone-retaining-wall/i

http://chestofbooks.com/gardening-horticulture/Landscape-Gardening/Wild-Gardens-

http://www.seattle-retainingwalls.com/gallery.html

Hope these few ideas help.  Regards ~Marc