Step 1.                               
Cut wood to size  from  
3/4" cherry stock 5" x 27".
Cut box lid 10" x 5".      
That leaves a piece 5"x 17"
for side rails.
Step 2.  
Cut two side
rails                     2 3/8" x
17" long
Step
3.
                                        
Router side rails with
decorative bit.

Can use bit from
Rockler.com #91859
Step 4.
Dado Side rails 1/2"
from bottom. Set dado for
just over 1/4" width and a
depth of 3/8." That will
leave 1/4" of wood around
bottom of box.
Step 5.
Use push stick only and trim
off 1/4" of side rail
vertically with top of blade
even with dado notch.
Step 6.                               
Bevel cut at 45 degrees
side rails to match
dimensions on lid. Be
careful or you will cut it
short. Cut bottom out of
1/4" birch plywood to fit
dado notch.
Step 7.
Insert bottom and glue
together. Hold tight with
rubber bands and clamp on
a squaring fixture if you
have one. Make sure box is
square.
Step 8.
Carve your design into the
lid.
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