Alright, the average person may not ever need to terminate (crimp a connector onto) the end of a Category (Cat) 5 cable, but perhaps you will someday. Just in case you do, I hope to create a foolproof guide containing all the information you need to do so. But enough of the intro, you came here for some info, so let's terminate some cables!
The Cat 5 standard has been updated to the Cat 5e standard. However, the crimping configuration remains the same, so these instructions will work for either standard.
There are some excellent additional tips and elaborations on procedure in the comments, so I'd recommend that you read those too as you go through these steps.
Step 1: Materials
In order to successfully terminate your Cat 5 cable, you will need:
~ Cat 5 cable
~ 8P8C (8 pin 8 contact) connectors - (these are also referred to as "RJ45" connectors)
~ A modular connector crimping tool
~ Wire cutters/strippers (may not be needed depending on crimping tool)