Yes, I did make that myself, and thank you for the compliment. Getting started is easy, it's trying to stop that is hard!!
Seriously though, if you want to make your own plugs it's pretty simple. You'll need a drill to start off with. The two plugs shown above were shaped on a mini-lathe, but I know guys who do all their work with a belt sander. I use both lathe and belt sander to get the different shapes for my plugs. Start with the drill with some sanding drums and see how you like it. If you really like it start buying other tools as your skill and interest progress. I must warn you, this hobby can be very addicting!!!
As far as the type of wood to use it depends on the type of plug you are building and what you want it to do(Light wood for poppers, heavier wood for deep swimming plugs, etc) I would start out with some old broom handles and see where it goes... Good luck and ask more questions, either myself or one of the other talented people on this site would be glad to answer.