As far as shaping, most guys use a lathe, but some do it by hand with a belt sander. Grizzly.com has some table top models.
As for tools, the list goes on and on, on the lathe you use shaping chisels. Other hand tools include.... pliers, screwdrivers, utility knife...etc...
To get it smooth... you sand it. I sand mine while their still on the lathe. I put it on higher speeds and it comes out like glass. If you decide to sand on the lathe though, you have to be very careful. If the sand paper grips to much, it could pull your hand in.
As far as ideas go. Use your imagination. If you think it looks good, make it. Wieghting it and such is all trial and error, you have to keep working on them to get them to do what you want them to.
Hope this helps!
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