For instructions on painting the labels onto the jars, try this tutorial. I would advise starting with recycled jars like these, rather than buying new jars specially for it, so that if something goes wrong it doesn't matter too much.
And for instructions on covering the lids, have a look here.
And don't limit yourself to food! I also plan to have jars for buttons, pompoms, and for all the bits and bobs to make my Christmas wall tree. And Justin has requested a jar to store nails and screws, and one for all the spare change he piles up around the house.
As always, if you have a go yourself, please post a link, as we'd all love to see!