Ah, HappyCat, you've come to the right place!
I just wrote a bunch ofthis to Dr. Lathe not too long ago, so going back a week or two may prove helpful, too. First off, ditch the open flame. You can heat Kydex in your oven, and for regular-sized knives a toaster oven from a pawn shop is nice since your significant other won't be pissed off at all the formaldehyde gas in the kitchen! In other words, good ventilation is of paramount importance, and wear good masks when doing the sanding work, too.
Anyway, oven temp should be about 200-225. Use foam padding for the molding process, which works most of the time, although I am having a hell of a time getting a good mold on a Reeve Mountaineer II right now. May be the Concealex I'm using, too. We'll see. In any case, play with foam padding and temps and you'll get a good balance worked out that works for you.
Best place to get Kydex is through a local plastics distributor. The 0.093" (3/32") thickness works for almost every knife, except for the real thin ones. You buy in 4'x8' sheets, which is plenty for tons of knives! If you want a little Concealex to experiment with, let me know and we can arrange something (I have 4'x8' of that in black, too).
0.093" in 4x8 will run around $100 plus whatever taxes. Most convenient size to have it cut into is 2'x2', especially if you have a table saw you can cut smaller pieces off with. Just personal experience. Cut more off than you thought you'd need and use a hacksaw to cut to rough shape. Use a dremel or belt grinder to do final shaping. Get the mold right first, then drill holes and stuff (this rule isn't absolute, but you need to learn the basics first). I buy my aluminum Chicago screws from a Canadian company, but I am fast becoming partial to the steel ones (black coated) that Blade-Tech sells. I think a set (screws and posts) is $20 for 100, although I can't be positive. Call them, don't email (unless you want to make sheaths without screws!
). Umm....I think that's it. Email me if you have more specific questions and I will make you a Padawan learner.
------------------
My Custom Kydex Sheath page
http://www.geocities.com/CollegePark/Lab/1298/knifehome.html
Palmer College of Chiropractic
On Two Wheels