Any hand drill will work, but if you have a nail hand drill you will do great!!
I don't have a small drill, but I do have a dremmel. So I switched the collets and put in a bit that was 1/16'' to make the holes.
You will have to do some sanding to clean up the nails and make them smooth, and you may need a grinder as well...though I don't have a materials list of all my drill bits...so I don't know the size of the grinder you will need.
Black polish, pearly white, silver shiny polish, top coat and fimo butterflies.
I buy my fimo in bulk and they are in canes. So, I do not know if you can get the exact butterfly fimo decorations. Fimo and polish is totally optional.