Mike, you can go crazy with all of this stuff.
But, the bottom line is this...
It is very easy to make a high quality strop. All you need is some good split cowhide. This should be anywhere from 1" to 3" wide, about 1/8" thick, and anywhere between 10" to 16" long. It will be smooth on one side and rough on the other. This will cost about $5 at a tack shop. Some places will even give it to you.
Next, you'll need a board to attach it to. I use Gorilla Glue as the adhesive. It can be found at just about any Home Depot for around $4. The boad should match the size (width & length) of the strop that you want to make. I've found that the 5 gallon paint stir sticks (which are usually free at your local paint store) are a perfect size.
Cut the leather into two pieces that are slightly larger than your wooden base. Mount one piece rough side exposed, and the other smooth side exposed. Clamp them and let the glue dry. Use a sharp knife and trim off the overlapping excess leather so that it looks nice and pretty.
Finally, apply a compound such as CrO. I prefer to put it on the smooth side. This leaves the rough side for any other compound that you choose to use. I heat the leather with a hair dryer, then rub the CrO crayon on it so that it is completely covered. Then I put a drop or two of mineral oil on top so that you can get an emulsion/paste. Just smooth it out and work it into the leather with your fingers. Let it dry, and you're all set.
You can not mix compounds on the same side, but you can scrape the old stuff off and put something else on in it's place. As far as solid or liquid compounds, it's up to you. Both are great.