I would like to make a custom list item read-only based on a field value, i.e. FieldName=Billed FieldType Y/N if Y then the iten is read only and can't be changed but if it is N then the item can be changed and resaved.
Is this possible?
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You could use a workflow that is triggered on ItemChange , checks the value, and changes the permissions accordingly. SP 2010 workflows have a Workflow Action called "Replace List Item Permissions" that can change permissions. This action is only available in an impersonation step. See: http://spcycle.blogspot.hk/2012/01/how-to-create-workflow-to-change-item.html