This served me well: 2 sheets of wet/dry sandpaper per grit starting at 180 grit and going up 150-200 grit increments to 1200 grit.
Various files, coarse for handle shaping up to fine.
A Vise; C-clamps, hammer (ball peen if you use rivets). An electric drill for drilling holes in the handle material. A Dremel is a handy option but not necessary.
Oops, forgot the coping saw for basic handle material removal
[This message has been edited by DC (edited 10-07-98).]