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How to compost
How I did it: I looked online on craig's list and found a worm factory (usually sold at www.happydranch.com) for free and got that, cleaned it, then posted on my local freecycle that I needed red wiggler worms and was given some... got a book called "Worms eat my garbage" for a 1 dollar at the thrift store, red a bit, set the bin up, added some scraps and the wormies and the rest is history, although I think I need a few more to eat all the food scraps, etc. It's cool though!
Lessons & tips: You can make your own worm composting bin out of a rubber maid container but it wont be as "sophisticated" (no drainage spout or multiple layers unless you make something...
Use red wiggler worms. You can look for them in the classifieds or buy them from some online stores and even, apparently, some bait shops.
Read up about the right concentration of brown (carbon rich) and green (nitrogen rich) waste, water, temp, etc.... you don't need a vermicompost bin but if you live in an apartment or don't have a yard or a lot of space it makes it a lot easier and worm castings are great fertilizer! :)
Resources: craigs list
Worms ate my garbage by Mary Applehoff
Youtube videos about vermicompost bins and setting them up.