A quick set of instructions, feel free to ask for more details.
1. Paint finished blade with spray paint, two coats works best.
2. Carefully scratch off your design with a needle, scribe, etc.
3. Fill the container with water and add about 1/4 cup salt, mix well
4. Attach negative lead to a piece of metal and place in one side of a small bucket or glass
5. Attach positive lead to the knife. This is the trick part, because it needs to NOT be in the water and any part of the knife you DON'T want etched needs to be either out of the water or coated with paint.
6. Attach your leads to a D-cell battery.
7. Come back in 30 minutes and it will be done
8. Remove the paint
Here are the directions I originally followed:
http://www.navaching.com/forge/etching.html