Most of what I know of yeast starters, I learned here:
http://www.mrmalty.com/pitching.php
Definitely worth a read. The general idea is that you want to pitch your liquid yeast into a very low gravity wort, perhaps 1.020, and introduce oxygen so that they will multiply. When I make them, I add 10 g of DME for every liter of final volume that I want and add it to an Erlenmeyer flask. Then, I just fill with tap water until I reach my final volume, boil it, and then cover with foil while it cools. I also sanitize the flask before I add anything to it and I flame the top before I pitch the yeast from the vial or the smack pack. Both White Labs and Wyeast claim that their yeast packages have enough cells, but many (including myself) do not agree.
There are other details like temperature and timing that you should also control for, so I'd really recommend reading through that article - about halfway down, there is a really good description of how and when to make your starter.
Two things. First, constant stirring keeps the yeast in suspension and prevents them from flocculating, so you will wind up with a higher number of yeast for a given starter volume. Second, it ensures that you are constantly introducing oxygen to the wort, which enables more reproduction. I have yet to build myself a stir plate, so I just shake my starter vigorously at the beginning and as often as I can while it grows. This means I need to make bigger starters than someone that is constantly stirring. That website I linked earlier has a calculator that allows you to determine the size of starter you need to make in order to get to an appropriate pitching rate.
Hope this helps - starters are really easy to make and will really up your brewing results. People pitch the yeast directly from the vial or the smack pack all the time and claim to have no problems, which is probably true. But their results probably aren't as good as they could be.