First, as a newbie you want to build a stamped kit first... they are easier to build with less special tools and there is just more options at a better price....
The first thing you need to go is order your kit(s). The Romanian kits are the best buy at this time. They make really great looking guns and I would suggest buying a couple.
As of the receiver, I think most people would agree that the nicest receiver right now is the 1.0 mm Receiver from GlobalTrades.com but the Ohio Ordance Works (OOW) receivers are very nice as well...
There are some basic tools you need to build an AK but I can't cover the entire process at this time... In general, you get your kit... remoce some rivets and take the kit down to the basic components. Then you simply reassemble through Rivets, Screws, or Welding. No special milling is required and the basic tools you need include a dremel tool, a drill press, and from there it depends on how you decide to build...
I am trying to document a build of an AMD-65 from an 80% flat and I hope to be able to upload it soon... My process is a little different as I have spent the money for all the special tools but there are lots of ways to do these builds without investing a $1000 in tools!