For prototype work, I have the boards made by OSH Park.  For larger production batches, International Circuits for PCBs.  I use a cheap toaster oven I bought from Ebay years ago.  I made a controller called RefloLeo that controls power to the oven through a relay (Power Switchtail II) according to a specific reflow profile requirement.  I Kickstarted the RefloLeo, but no longer sell these.  You can build a similar product from an Arduino Leonardo with a thermocouple breakout board, and even use my open source code for this if you want.
RefloLeo:
For stencils, I use a CNC router (Zenbot Mini with Wolfgang Engineering spindle).  I mill from 0.003" brass sheets that I buy from McMaster-Carr.
Solder Stencil:
            
            
My CNC router:
For solder paste, using lead-free:
Kester Solder Paste, NXG33, No-Clean, SAC305
For hand-soldered parts (lead-free):
Kester Wire Solder, .025", Sn96.5 Ag3 Cu.5, #58/275, 1 lb
These days, I still use this same setup to bake boards for production every week.  I can get about a dozen smaller boards in the oven at the same time and bake them.  For the relatively low volume, hand assembly works well.
I place every part by hand with tweezers, so I did invest in a good set of ceramic tipped tweezers.  I really like these:
http://www.techni-tool.com/758TW268
Hope that helps.
-John