You will need:
Block of wood (Can be found at Goodwill, scrap stores, or just make it yourself)
A few cool fonts you like (FontSquirrel.com)
A phrase - maybe check out a few rap lyrics
Step 1: Create your artwork on Illustrator
Separate out your phrase into a few rows, each row being a different font.
Right click on your text and choose "Create outlines"
Add some decorative styling like lines, curves, images, etc.
For images --> My flower -- You can make cool patterns by creating a shape, then clicking on the Rotate. Choose your degree of rotation (ex: 25). Make sure you check "Copy". Then click "Okay". You will see a duplicate shape that has been rotated at 25 degrees. THEN use the shortcut "Command"+"D" to duplicate it again, and you've created a pattern!
For the elephant, I took a real picture of a decorative elephant I liked, the live traced it (Edit --> Live Trace). It looked pretty rough, so I had to then use the direct selection tool (the white arrow) and edit the anchor points (the little white boxes that show up) until it had the shape of an elephant I liked.