Sorry for the horrible picture, I'll try to find another one - but you get the idea.
After a suggestion from Tom Blake at work, I went ahead and made a couple of bars of homemade soap. Instructions can be found here, but the basic idea is take some fat (olive oil and Crisco), add some lye mixed with water(careful with that step), and then beat the heck out of it until it starts to thicken. Pour in molds and wait for it to do its thing.
I did go ahead and 'superfat' the soap with jojoba oil. Basically, once the soap thickens you can add a little special fat at the end to give the soap some other characteristics. In this case, the soap is really good to wash your face now.
And with most of these things, you can add and experiment until your heart's content - and there are tons of recipes on the internet for special types of soap (e.g. oatmeal, shaving, laundry, etc.)