@Kane,

I'd recommend starting with the following patterns:
http://www.schoolofpuppetry.com.au/tutorials.php/muppet-type-puppet-patterns-a-list

Or else, try The Foam Book:
http://www.schoolofpuppetry.com.au/tutorials.php/book-review-the-foam-book

I'm afraid to say that making a muppet-type puppet is far too complicated to explain in one blog comment, however you'll find some excellent starting points there. Additionally, there are some excellent video tutorials that should help you get started (you'll have to scroll down a bit to see their recorded videos):
http://www.blogtv.com/People/StiqpuppetsLive

If you've never made a puppet before, I really recommend you start with something simpler, like a sock puppet. Muppet-type puppets are one of the hardest ones you could make. - But good luck with it either way!

... School of Puppetry on What are costume puppets?
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