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I would like to build a solid body guitar similar to a telecaster or a stratocaster, is there a kit to buy for these or would you recommend just buying a blank and shaping. I have access to all of the power tools I would need (my wife's grandpa is a awesome carpenter) and I can pick up the hand tools as I go.

Maybe something like this http://www.byoguitar.com/Guitars/Full-Scale-Tele-Deluxe__BYOPLAN-TELE-DELUXE.aspx

Hey Rob, I bought an unfinished Tele kit from Guitar Fetish. It went together nicely and was only $100.
For me, a kit was an easy way to get started.
DZ

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What kind of pickups do you guys recommend?

What kind of paint do you use for the final finish I was thinking of a pearl white can you use automotive paint with a couple coats of clear?

Go to http://www.tdpri.com, scroll down to the Tele Home Depot forum. There are hundreds of build threads in excruciating detail that will show you how to build a tele from scratch. You can even pick up the blueprints to make the build templates there.
It's not that difficult, especially if you have a shop.
If you want a kit, the GFS kits have gotten pretty good comments on several forums.
And yes, you can use automotive finish. I recommend Duplicolor automotive lacquer if you go that route.

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Mike

The only thing nescessary for evil to thrive is for good men to do nothing.

Pick up a copy of Melvyn Hiscock's book - his second build is a Tele-clone. Whether you decide to build from scratch or assemble parts, Hiscock will talk you thru geometry, type of neck joints, electronics, finish and all the other things that are important.

You can choose to buy some of the parts pre-made - neck, fretboard and body - depending on your comfort level. Warmoth, StewMac, many other sources. Just make sure that the neck pockets are compatible, either with Fender's standards or buy all the pieces from one source and they will (probably) work.

The hardest parts of scratch building are shaping the neck, shaping and mitering the fretboard, routing the pocket for the neck and pups, binding (if you choose to do it) and finish. There are many ways to finish, each builder seems to choose there own - I will just say that it is very difficult to get a truely professional looking finish in a home shop.

I'll let others comment on pickup, however I think the StewMac are a good reasonable starting point and their wiring kits usually have everything you will need (including good instructions). Good luck and have fun.