Hand drawn texture pack 64x64 colored with straight lines with marker, outlined certain items in pen. I made a grid on pages with a mac computer and used a scanner to upload them to a flashdrive with then I plugged into my mac and used photoshop to crop the images, then I used gimp to layer the images in painstakingly one at a time. So yeah, it's fun, but hard.
UPDATE: Terrain is nearly finished, just need to finish up some terrain files you'll hardly use/find, plus I want to get started on the items.