Here are some sites dealing with working with paper clay:
There’s a good guide to working with paper clay in miniatures http://reviews.ebay.com/Dollhouse-Miniatures-in-Paperclay-Some-Tips?ugid=10000000001947740
And some helpful information here http://www.minimotion.com/HOWTO/paperclayguidelinespage.html
Connie Sauve’s take on a Rik Pierce workshop http://www.thechinadoll.com/tudorloo.htm
From the Small Stuff archives: http://smallstuffarchive.com/tips/index.php?topic=Claypaperclay
She also shared methods of covering the chimney with bricks including bricks using the Bromley stencils (really quick delivery from the UK) with sand grout from your local hardware store (greater colour selection and much cheaper); bricks made from sandpaper; and bricks made from egg cartons. And shared hints on how to make paper (sheets or self-printed) look most life-like.
The Bromley stencils are wonderful and quick - very life-like.
I chose not to work on my chimney because I plan on doing it with a brick finish. But I did want to try working with the Paperclay...
Since a package of Paperclay is $16.99 at Michael's and Joanne found Crayola Model Magic at WalMart for, I think, $6.99, we both worked with that. She worked on her chimney - and it looked great! Even without all the paint that will finish it off.
I decided to do a circular stone patio to put on the lawn between my houses with the stone fountain in the centre.
The patio piece I did at club needs some repair (I was showing it to someone and some of the 'stones' fell off) and it needs to be painted to make the stones 'come alive' - which should be interesting since I'm not very good with colours and washes and all the other techniques that make things come alive. But so far, I'm pleased with the stone work itself.