Tools mentioned above, but most importantly....PATIENCE!! Take it slow, use one way motions. Make sure the frame is in a vice when you are working on it. Check the fit often and try concentrate on one dimension at a time. Get the horizontal close, then move to the vertical. As you get closer to the snug fit phase, rotate around the different dimemnsions with higher frequency. Don't forget about some lapping compound to really give that final polish. Use markers on the rails before each test fitting to deterime high spots as well. Again, just take it slow and you should be good to go. The video mentioned is good, but I would also strongly recomend the 1911 Bible (Khunhausen).
I agree Sniper, if you have access to the correct automated tools and use them properly you can achieve a very good mate. But if you don't have access to them and still go the route of hand tools, a good quality job is not out of the question. Takes a bit longer, maybe not the exact same tolerance capability, but still quite doable based on the guns I've built and seen built by other home-smithers.