John, first what are you fishing for? If bass, I would suggest starting with balsa wood. it is the easiest wood to carve and finish, and by far the most forgiving when it comes to weighting. I would stay away from the hardwoods until you get more experience making baits.
you can use a coping saw to cut out your blanks. Make sure to cut the lip slot first before you carve the lure. What material are you going to use for the lip?
I would suggest you buy a good xacto wood carving knive and some straight blades(the sharper the knife the better). You will need balsa at least 1/2 inch thick and 2 inches wide. That will get you started on flat sided cranks. This stuff can be found at a hobby store.
Bass pro finess weights 1/4oz size, drill a 1/4 hole for your belly weight, then cut the weights to get the desired bait weight. Tell me size of the lure you want to make and I will be able to tell you how much weight to put in it to get a good balance.
I don't use the screw eyes with my baits, I use 20ga steel wire from Lowe's and twist my hook hangers with pliers and a nail. I feel these hold better than screw eyes.
Here is the #1 rule you must follow, line tie, belly weight, and tail hook hanger MUST all be in the exact center of you bait or it will not run right.
You got alot of steps ahead of you, this pic is what you end up with prior to painting.