Step 1: Things You Need
Setting up this kind of studio is not as complicated as you might think. You just need a place with a wall colored in green. There are three types of chroma key background materials that you can use: fabric, painted, and paper. Unless you are a professional film maker, I would recommend the last one for a home studio as it is cheap and easy to set up on a wall. Remember that brighter is better, so go for a more neon or lime green color when choosing material.
Also you should plan your screen lights. The key to lighting a green screen is consistency. The whole point is to create a single, consistent shade of color across the entire screen.
With your video background you also have a choice: You can invest your time in making your own or buy the professional, but quite expensive, footage on stock sites. I prefer making video background in DP Animation Maker. It’s easy; you get awesome results for many purposes; and it’s priced reasonably. This neat tool can be found at http://www.animationsoftware7.com/
You can use any program that supports the Chroma Key feature. I used Wax, the simple freeware video editor.