This is a pic of my first attempt at paper piecing.
http://home-and-garden.webshots.com/photo/1044582343037334852LORWjy
I hadn't been quilting long and fell in love with the pattern so I went for it. Because each block is the same, I made templates of each piece and I've continued to do that when I paper piece, especially with a large project.
I trace the finished section and add about 1/2" all around, then use that to roughly cut the piece of fabric. If I just use pieces of fabric I find I often cut them too small (I hate wasting fabric). If I use a template, I tend to waste a lot less.
Don't be afraid, it's not that all that difficult once you get your brain wrapped around the concept!