I'm currently working on the challenge It's still in process, and the pictures are ridiculously bad (because I have no camera I had to take a webcam photo of it), but here's what I have so far!

Click image for larger version. 

Name:	1.jpeg 
Views:	88 
Size:	102.6 KB 
ID:	41100Click image for larger version. 

Name:	2.jpeg 
Views:	79 
Size:	88.2 KB 
ID:	41101

With cardboard from a cardboard box I made a slightly sloping terrain. I covered it with paper and plan to cover it with either coloured sand or just sand which I'll later paint green. After that I'll start building some houses. Not sure which era I want my town to be yet. I'd like to build a cathedral, but I'm not sure if the whole town will be medieval.