Here's a few links to some different ways it's done. It's really up to you and your shop set-up and space. The important thing is to be patient.
One of my previous posts on how it's done:
http://www.woodcarvingillustrated.co...ad.php?p=39347
Some do it all in one station:
http://www.sonic.net/~bobino/woodworking.html#Shop
Scroll down almost the to bottom for description. Click on image, or next link for picture:
http://www.sonic.net/~bobino/images/...ySharp_big.jpg
Some have an organized system that can be set aside:
http://www.woodshopdemos.com/sss-2.htm
Some do it on the fly like me: Keep the sandpaper flat, divided by grits, between thick pieces of cardboard, in a plastic bag. Take out what I need, lay it on a smooth surface--usually the smooth side of a piece of 12"X12" masonite. Sand til I'm done with that grit, move to the next one. No glue, no glass, no jigs, no hassle. I just use one hand to hold the paper, and the other to sharpen. Just be careful to keep the tool away from the hand holding down the paper. Occasionally, I used four spring clips or clothespins to hold the paper along the edge of the board--just kept the tool away from the spring binder clips. But then I got lazy.