Wingmann...
Might I suggest that you click on the following link to Smoky Mountain Woodcarvers (SMWC) and then go to page 33 where they offer all kinds of cane blanks. It's their 2007 catalog but they can send you a 2008 if you give them a call. The page is just about the same in both issues.
http://www.woodcarvers.com/SMWC_07_FINAL.pdf
If you have the time and resources you can go out in the woods and select just about any proper sized sapling, cut it, strip off the bark, and then let it set for about 6-months to dry out. If all the bark is stripped off a sapling under 2-inches generally will not split. Poplar, maple, oak, beech, dogwood... your choice depending on the tools you select. Softer wood can be hand carved.... harder woods are more easily carved with power.
As for the tools, give SMWC's a call, tell them what you plan to do, and let them make a recommedation. I think that you'll find that they won't steer you wrong.