You start with an X-Acto blade, soft eraser (Staedtler works the best), and a pencil.

Dust off the brain and think of something you want to stamp onto stationary, gift tags, cards, envelopes, business cards, etc.
Then carve it!

I made a blade of wheat, a cute little acorn, a heart (the love kind, not anatomical though that would be cool...hmmm...), an old door, and then, as seen above, some yarn and a crochet hook. It's fabulously addicting to sit in a cozy chair and whittle away all your little ideas. People that know me know that I'm the weird one. I do not really make conventional crafts, but this seems fairly normal to me.
I think I'm going to go all out and plunk down the ten bucks to get a Speedball Cutter set and maybe even the extra $3 for some linoleum blocks. The X-Acto knife is fine 'n' all, but the gouger in the Speedball Set, I hear, can carve very fine lines that no X-Acto blade will dare. Wouldn't these be awesome for the craft fair in September? I think so.