The drawknive is the granddaddy of all log furniture building tools. A drawknife can be used to peel the logs and make the tenons. This does require some effert however and there are easier ways. There is also one drawback to using a drawknife and that is "planer glaze". This is the closing of the pores of the wood as a result of the cutting action. This is less of a problem on inside furniture but is not good for outside where stain will be used, as the stain is'nt able to properly penetrate the wood.
    The biggest challange is the mortise and tenon joint, this is the joint that makes log furniture so appealing. There are other joints that can be done such as dovetails but we will discuss the round mortise and tenon. The best way that i've found is the centerline method. This is where you drill a pilot hole in either end of the work piece and rotate it over a saw blade. Another popular method is with a chucking machine, this is like a pencil sharpener and the work piece is pushed into it. This system is very restrictive when you are dealing with very crooked pieces and really only works on uniform logs. One main advantage to the chucking machine is production. This method is far faster than standing over a table saw turning the piece by hand. It is also possible to get different cutting heads for your chucking machine but these tend to be rather expensive.
    So back to the centerline method, when drilling the pilot hole it is imparative that you drill in a line aimed at the other end of the workpiece. This can be accomplished with a jig and some ingenuity or there are systems on the market. The system that we use was built by ourselves and has no restrictions on the length of piece to be used. The same is true for the saw which we use, we have made 14 foot rails and have done 6 inch diameter logs. The saw utilizes a 10 inch round blade with a chain saw chain for cutting teeth, these can be obtained for weed wackers and are used for thinning trees. You will need a minimum of a 1 hp saw motor and a 2 hp works better. Our saw blade turns at 1375 rpm, attached above the saw blade is an adjustable pin on which to rotate the log ( pin size 5/8" ). Different styles of tenons can be made by changing the size of the blade and by changing the angle of the pin to the blade.
    After mastering the tenon the next step is to drill the mortises. A radial drill press will allow you to drill holes on an angle, this is desirable when building beds and stair rails. The drill press that you use must be secure and a 3/4 hp motor works fine ( any more power and you're liable to get hurt ). The drilling bits to use are "wood boring bits", these are simalar to a forstner bit but much beefier. You should be able to accomplish most tasks with just two bits, a 2" for spindles and a 2 1/4" for the rails.
    If you decide to sand he logs instead of using a drawknife you will want a sander that will be capable of doing the job ( no cheapies here )These are the main tools needed to build with but after years of messing around you will have some special tools and probably some that you have built on your own.