I went through my tool drawer and these are the things that were in it. Other tools were suggested by contributions by members of the about.com miniature group.

1. Dremel. This is a multipurpose electric tool that does everything from drilling to routing and I used it with a mini buzzsaw attachment to widen a staircase opening. There are 2 kinds, the portable hand held and the plug in one with an optional hose attachment. I have both. The portable one is good when you don't want to be tied to an electrical outlet and the one with the hose is great because the hose allows you to get to those hard to get areas.
2. Clamps. I bought a set of the plastic ones by Exacto. They are also good for furniture kits.
3. Small hammer
4. 1" nails are best for putting the shell together
5. Glues - Elmer's yellow carpenter for putting the shell together, Quick Grab for shingles and siding, Super Glue Gel for putting together broken stuff. DO NOT USE HOT GLUE. Wood fill.
6. Needle nosed pliers
7. Exacto knife
8. Sandpaper of varying grits. Tacky cloth, very fine steel wool. These are also good for furniture kits.
9. Foam brushes- those are the only kind I use for painting and staining.
10. Mini miter box and fine and coarse blades
11. Small soldering iron. I've used it on occasion. It's nice to have when you need it.
12. Brick cutter if you're going to be bricking.
13. Forceps

Where I use molding:
Floors -baseboard
Where the ceiling meets the wall
Around doors and windows
On the wall
On the ceiling
Chair railing
Edging around the ceiling side of stair openings

You must have a mini miter box and saw in order to properly use molding.
Use a fine tooth saw for most of what you do as it gives a nice edge and doesn't
shred the wood. The purpose of the miter box is to cut the wood at an angle so the pieces
fit together nicely when they meet in the corner. One piece of wood is cut at an angle
going one way and the other piece of wood is cut with the angle going in the opposite
direction. When the angles on the two pieces of wood are put together,
they should make a clean corner.
Practice on some scrap wood before you ruin the good pieces.

For molding that is used where the ceiling meets the wall, you should miter it ceiling side
down. In other words if you're using molding that is wider at the top than at the bottom,
you should cut it with the wide side down.

I use molding that is flat in the back and front, on ceilings and walls.
In some rooms I ran it around the edge of the ceiling, and in other rooms, I made squares
or rectangles on the ceiling. I also use flat molding to do the openings of stairwells on
the ceiling side.

Chair railing is nice if you want to do wallpaper on half the wall and paint on the other half.

Steps in wallpapering:

1. Cut the paper to fit height of the wall. It's ok if it's a bit short as you will use
molding..
2. Apply the paste to the paper using a foam brush. Don't use too much paste and apply evenly.
3. Allow to dry for a couple of minutes.
4. Put paper on wall starting at the top and slowly working your way down, smoothing with a
rag as you do it.
5. When complete, smooth from the top down with a rag making sure there are no bubbles.
6. Allow to dry 24 hours.
7. Using an exacto knife, cut out the holes for the doors and windows.

Notice that I don't precut the openings for the doors and windows. This makes life very
easy and avoids measuring mistakes. Make sure the paper is dry before you start cutting
because if it's not, the paper will start peeling off.
Sometimes the paper doesn't meet cleanly in the corners. I take quarter round molding, paint
it a color complementary to the paper, and stick it in the corners. It gives the room
finished look and hides the poorly done corners.
And that is another trick of mine-molding hides a multitude of sins and there is lots of
molding in my dollhouses

You can do wood flooring yourself with wood strips and I have seen some beautiful work.
However, I'm not that talented and am very bad at measuring so I use I use Houseworks
wood strip floors. They come on a paper backing and are easily to install. The floors
come in either wide or narrow planks and in several finishes.
I only buy plain pine and stain it the color that I want.

1. Staining wood floors.
Stain before installing. I use a foam brush and use a small amount of stain
. Too much stain at once wets the sheets and the planks will start coming off of the floor.
. It's better to apply the stain in several coats to darken it rather than soaking it at
. one time.
Allow it to dry for several days
2. Varnishing.
I use Deft varnish available at a hardware store. It comes in matte or gloss and
I prefer the matte finish. It stinks and I try to use it outside.
Apply small, even, amounts with a foam brush. After it has dried for several days, you can
apply a second coat. Before applying a second coat, you can sand with either very fine steel
wool or very fine (black) sandpaper. Make sure to clean the floor after sanding
and before applying another coat.
3. Installing
I run my tapewire on the floor so I don't want to permanently install the floor in case
I need to get to the tapewire. I use double sided tape to install the floor.
Install the floor before adding the baseboard as the baseboard will hide any uneveness on
the edges of the wood floor.

B. TILES

You must make sure to install tile symmetrically. In other words, if you are going to end
up with half a tile on the right side of the room, you should also end up with half a tile on
the left side of the room
Start in the middle of the floor. Measure carefully and find the center of the room and that's
where you will start. You can be precise and exact and measure out where each tile will go
but I eyeball it along the way. I lay out the tiles to see if they will look good and then
start gluing.