RCU member MinnFlyer has done some great how-to articles and videos on covering. check them out as they will go a long way to getting you started.
[link=http://www.rcuniverse.com/magazine/article_display.cfm?article_id=67]Minnflyer Covering how-to[/link]
[link=http://67.18.81.100/rcuvideos/magazine/reviews/352/cov1.wmv]Minnflyer Covering video, part 1[/link]
[link=http://67.18.81.100/rcuvideos/magazine/reviews/352/cov2.wmv]Minnflyer Covering video. part 2[/link]
[link=http://67.18.81.100/rcuvideos/magazine/reviews/352/cov3.wmv]Minnflyer Covering video, part 3[/link]

newest covering videos
[link]http://www.rcuniverse.com/magazine/article_display.cfm?article_id=726[/link]

No on to the subject of tools. All you really need is a heat source. My first covering job was done with a travel iron that I had. It was all I had at the time. The job came out looking pretty good actually (still have the plane with the same covering job). You can do a covering job by just using a sealing iron, as long as you realize that it's going to take a LOT longer to shrink and stretch the covering material. A heat gun lets you shrink a lot of material quickly. After I shrink with the heat gun I will then use the iron to seal the covering down to the wood of the plane. So if you are using just an iron you will want to first go over the area without applying pressure to the covering material, you want to get it hot so it will shrink. After you have it shrunk you can then go over it again with pressure to adhere it to the wood.

If you're interested, here are the tools that I use when covering a plane.
[ul][*] heat gun[*] 3 covering irons. One set to a high heat, one to a lower heat, and the third with a hot sock on it.[*] Trim iron[*] Welder's glove (to hold the material with while you are shrinking it so you don't burn your hand)[*] A 100 pack of single edge razor blades. I use 10-30 blades per covering job. As soon as the blade starts to "catch" when you are cutting material it's time to replace it.[*] 4' length mirror. Great for cutting your covering material on. It's also perfect for sealing two different color panels of covering material on.[*] 36" metal straight edge. Absolutely needed for getting a good straight cut.
[/ul]

Ok, I think that's about it.

Hope this helps

Ken