Yes, you can build an AK-47 receiver at home rather easily if you have a basic knowledge set and tools- things most mechanics would have. The rest of the parts are available commercially without any paperwork. http://impulsereaction.com/docscache/CncGjig/AK-47%20Lower%20Receiver%20Blank%20Build%20Tutorial%20-%20Gunco.net.html
Please note that this method of building is one builder's technique (and a very efficient one at that). Techniques vary from person to person (and blanks). There's hundreds of different methods you can use and if you find one that's comfortable for yourself, then use it! If Silver Dollar's methods work for you, by all means follow this tutorial step by step. If you have any questions at all, feel free to contact us.
The Front Trunion
Since these blanks are a brand new item, I thought I would document the steps necessary to complete a build using one of them.
I start with the front trunnion and work my way back.
Edit: Since this tutorial was done, I've learned that you are better off mounting the TG first, then use a mag to verify front trunnion location.
Step one is to fit the front trunnion.
All the measurements I use should be checked against your own kit as they may vary.
First, remove approx 1-1/4" from the front of the blank.
Note: This tutorial was created using a longer blank. Some blanks require NO TRIMMING at the front. Start off by FIRST fitting the front trunion (trim the top rails for the trunion to go in). THEN remove metal with a file ONLY to square the front of the blank off with your trunion/barrel assembly. Final fitting for the overall length should be done to the rear of the blank.
Editor's Note: This can be done with a variety of cutting tools, including a dremel and cutoff disc, hacksaw and/or chop saw. Always remember to square off the top of the blank for your cut.
Next, remove almost the entire top rail for the first 2-5/8" leaving just enough of the bend to engage the "slots" in the trunnion.
Always remember make all cuts long and file to fit.
Locate and drill mounting holes for front trunnion. Start undersized to check the location, finish with a #21 drill bit.
Here is one of many sources for other AK parts you may not need to build at home. http://www.parts4ak47.com/ak-47_accessories/category/AK-47_Parts.html
The lower receiver is the only part that only needs paperwork if purchased. The rest can be purchased as easily as a pack of gum. Note: You can only legally build a firearm in this method if you can legally own a firearm and you do not give it away or sell it.