I would like to create a village. Apparently this is possible as of Minecraft 1.4.2, so how do I do it?
There are two ways I know of to create a new village:
Transplant villagers from an existing village: It's possible to transport villagers from an existing village, such as by placing them in a minecart, but two criteria must be met for them to stay where you unload them:
They must be at least 32 blocks from the "center" of the existing village, or else they will simply return to the village.
There must be homes at the new village, or else they will simply wander.
Cure some zombies: As the answer to this question indicates, zombies that spawn either in the wild or from spawners have a chance (10%) of being a zombie villager, which can then be cured using a splash potion of weakness and a golden apple. If you build a village according to the links I gave above, you can then populate it with nearby randomly-spawned zombie villagers that you have cured of their zombie status.
If you want to make a new village and you've found one, use minecarts. Push a villager in and make sure the tracks lead to where you want your new village. If you haven't found one, cure zombie villagers. When you build the village, doors are all that matter. The number of doors = the number of vilagers. If you have two villagers and enough doors for more, they will breed (just like animals) and a baby villager will be born.