The book I used is "A Timber Framer's Workshop" by Steve Chappell. The actual design is a combination of methods from the book and examples I found online.
To cut the mortise and tenons I used power and hand saw, forstner bit to rough out mortises, and a 1.5", 2" and corner framing chisels. (bought 1 new and 2 on ebay) (It was hours of work but enjoyable work)
I drilled joints when bents were ready to be raised and pegged with hardwood dowels (I cheated-they're supposed to be formed from 1"X1" stock) The remainder of joints were drilled and pegged in place.
I plan to post my first Timber Frame (summer of 2009) with photos that show some of the process a bit better.
Loren