I etch my own boards, usually because I like to free up a bread board and am too cheap to keep buying dev. boards.

I've found it pretty easy and straight forward. For me it’s harder to create the PCB layout than it is to etch the board. I use the Press-N-Peel sheets, usually purchased through http://www.allelectronics.com/cgi-bi...OARD_KIT_.html. However recently I found out you can get as good or better results, with a magazine. You print the design with a laser printer onto a piece of glossy paper out of a magazine. Place that page onto your board and heat it with an iron (on the highest setting) the design will then affix it self to your board.
http://myweb.cableone.net/wheedal/pcb.htm

I started etching with the kit from Radio Shack but quickly out grew it. I now have a plastic tank with heater and pump.
http://www.circuitspecialists.com/prod.itml/icOid/4231

I use Ammonium Persulphate because it is clear so I can see the progress and can be purchased dry. (easier to store) I also tin my boards with "Liquid Tin." I originally used the stuff you have to put in the oven. It took the better part of an hour and stunk up the house. Liquid Tin takes five minutes, no heat required, very easy.

Finally, I haven't done SMT stuff yet. However the guys at sparkfun.com have done three tutorials on it. These are the techniques they use; my favorite is the skillet which works pretty well.

Enjoy:

http://www.sparkfun.com/commerce/pre...Reflow Skillet
http://www.sparkfun.com/commerce/pre...Reflow Toaster
http://www.sparkfun.com/commerce/pre...p?p=Stenciling