I've not done one, but there are some fine examples here if you search the photos. One I just saw one that had a Bigsby trem arm, so not on the cheap unless you find one in the trash! I'll see if I can find them and repost.
Yes that is a whammy bar. Needs some work.
Added by Max "Georgia Boy" Legge on February 1, 2010 at 12:29am
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Do not know how to paste photo here , but if you search photos or "Whammy bar" you will find this, or go to "Georia Boy's "Page.