Ok, let me repost my tutorial from Survival HQ, SERE International...



Lets do this the way that I first did it, because it works, is clean, fast, cheap, and simple...

Get old 100% cotton(vital!!!) t-shirt.
Cut about 6 to 10 1.5"x1.5" squares...
Stack them neatly on top of one another.
Set them on a square of aluminium foil about 6"x6".
Fold the foil around the cloth tightly and crimp tightly around the edges...
Take a needle and punch a small hole in the top of the stack, NOT all the way through...
Hold IN open flame... I use kitchen tongs for this...
Smoke will start pouring out of the hole...
Despite some recommendations to the contrary, I prefer to let the smoke ignite...
When smoke plume stops burning, give it another 8 to 15 seconds in the flame and then remove it from the flame...
Do NOT open it yet... In a normal container, you must wait quite some time before opening it, because the heat will cause the charcloth to spontaneously burst into flames as soon as the air hits it... This is not QUITE so important with the foil method(and such a small batch), because, the whole thing will cool off in a minute or two...That is one of the reasons to start out this way... Nearly instant satisfaction!
Unwrap, and enjoy!!!

If you are right handed...
Try holding the flint in your left hand(palm up) with a piece of charcloth on the left side of the flint, RIGHT along the edge... Hold the steel in you right hand (with the curve down to protect your fingers) and strike down FAST(not hard) the edge of the flint should direct the burning metal(in a real flint and steel, it is the steel that does the sparking) right into the charcloth...

When you get a spark in the charcloth, you will not think much of it...
It will just be a little speck glowing dimly on the cloth...
But, if you blow gently(so as not to blow it away, the stuff is lighter than a feather), it will get very bright and radiate a lot of heat...
The idea, it to put the charcloth in a tender bundle, and blow into that, it will then ignite the fine stuff in the center, which will then ignite the bigger stuff around it, and it will burst into flames... The first time you see it done, you will be surprised at just how fast it goes from nothing into a ball of flame... I am very glad I saw someone do it before I did it, because I would have thought it would just start with a little flame licking out of the top of the tender bundle... It is often anything BUT a little flame!!! Sometimes it even makes a little 'whoosh' sound as it bursts into flame...
You then(QUICKLY) transfer the tender bundle from your hands(by this time, you will not need ANY coaxing to do this! ) to your fire lay...

There you have it...
It is a LOT easier in practice, than describing it...