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Tina Sams generous offered to write this for us, isn't that nice? Folks, this lady wrote the book (LITERALLY) about making herbal incense....

Making Incense

by Tina Sams

There are a couple of different kinds of incense. A very simple means of making incense is to put all the scent producing ingredients together and then burn them using self lighting charcoal blocks.
A wonderful recipe for something like that might be:
1 Part pinion resin
1 part ground juniper berries
1 part powdered sandalwood
Light the charcoal and sprinkle a pinch of the mixture onto it as it burns.
Repeat as needed.

To make your own self lighting cones, you must assemble a few hard to find ingredients, but once they are in your possession the rest is easy and fun.
To make smudging cones (or sticks - like the clay snakes we made with clay as children) try this recipe:

Cedar, Sage, and Copal Smudge Cones
1/2 part gum tragacanth
6 parts powdered cedar
2 parts powdered copal
2 parts powdered white incense sage
1 part powdered orrisroot

1 part salt petre
2 ounces of water

Combine all dry powders except salt petre, and blend very well. Mix the water and salt petre until dissolved. Pour into the powders and mix very well. Continue adding plain water until the mixture turns to a dough-like consistency. Mold with your hands to form cones or sticks...or be creative. I've seen people make small animals, runes, and all sorts of shapes. The smaller, the better for even burning.

Allow to dry for several days. Store in a cool dark place.

The Essential Herbal - the magazine by, for, and about herbie people and the things they love - HERBS!!! http://www.essentialherbal.com/

Here's a few resources Tina suggested, for getting the supplies mentioned above.

essentialherbal.com
blackkatherbs.com

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