I can't speak about engraving, (wish I could) but as for the wood part, it's not realy hard. I've made stocks for a Mosin Nagant, Jap 7.7 and a 8MM Mauser out of walnut and oak, I start with a very rough cut shape and then chanle for the barrle and action takeing measurments from the old stock. ( A good caliper, square and some very sharp chisels is a must, a drillpress is handy too.) Once you get the action and barrle fitted you can make the exterier of the stock to your liking. I use a belt sander, hand grinder and a rotary rasp that chucks in a drill for rough shapping then on to electric hand sander and lots of sand paper.
Dem-Bart make a nice set of chekering tools for under $50. I played a round with some scrap walnut and then layed out a simple patern and jumped in with both feet. Its not real hard but very time consuming. I've got one side of a thumb hole stock for my jap done and I'm at least five hours into it, hopefully the secound half will go a little faster as I get more practice.
I say go for it, you probably won't end up with a musium piece but it will be all you and thier won't be another like it in the world.