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Signing UpStep 1What you need
A guitar (obviously)
headphones (the kind that you put in your ears)
an amplifier
a guitar cable
a cd player, mp3 player, iPod, etc.
OK, that's it!
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A pickup is a copper coil with 6 steel pole pieces and a magnet on the back. It can be used for many purposes. It's basically equivalent to a solenoid.
You can build a speaker out of a pickup or vice versa, all the old electric guitars were built using speaker parts.
A pickup is an electro-magnetic transducer.
Also, for the reversability effect, lots of people use a standard yamaha NS-10 speaker as a kick drum mic. There's a few instructables here about how to do that.
http://www.zyra.org.uk/sp-mic.htm
http://www.instructables.com/id/SPKR-MiK--How-to-make-a-microphone-from-a-speaker/
The fundamental thing to understand is that when a wire moves through a magnetic field, the electrons in the wire therefore move around creating a current. If you put a current through a wire, it generates a magnetic field.
This is how loads of stuff works. Electromagnets, dynamic microphones, guitar pickups, transformers, speakers, Inductors...
What's clever about the guitar pickup is that the pole pieces are used to magnetise the strings, so when they move, the coils generate a current.
If you connect an amplifier's outputs to a guitar pickup, it'll agitate the strings much like a speaker coil agitates the speaker diaphragm.
It's not one way in the slightest, it's electromagnetic induction, it works both ways.
http://en.wikipedia.org/wiki/Electromagnetic_induction