Safety First
It is hard to talk about fireplaces without first talking about fires. Building codes often have very specific regulations regarding what kinds of material can be placed near the fireplace opening. Check with your building department before you do anything else to learn what those regulations are in your area. It is common for codes to require that combustible materials be placed at least 6 to 12 inches away from the opening. Newer direct-vent gas-fired fireplaces often have different requirements than old-fashioned log-burning fireplaces. If you have the latter, you might also want to see about getting the chimney cleaned and, if necessary, repaired before adding a nice new mantle.
Design Options
It is best if the mantle style fits in with the style of the house and its furnishings. You may want to look at the casing around the doors and windows of your home to get some initial ideas. Furniture can also offer inspiration. Doug designed his mantle to mimic the knotty pine armoire sitting near the fireplace.
A basic mantle is composed of vertical columns (or pilasters) on each side and a horizontal frieze, with a shelf along the top. More elaborate designs have another section above the shelf (called the "overmantle"), but most do-it-yourselfers will be happy with a simple mantle. To decorate the wall above the shelf, add a mirror or framed painting. To ensure a comfortable sense of proportion, make the frieze taller than the width of the columns.
Traditional styles of mantles often utilize frame-and-panel construction or they have fluted columns. This kind of work tends to require serious woodworking skills and tools to match, but there are simpler ways to achieve similar results. You can add border strips around the column and frieze boards to create an illusion of frame-and-panel construction. Flutes can be cut into each piece using a plunge router and suitable bit, but you can produce much the same effect by attaching pieces of half-round molding instead. You can also attach pieces of pilaster molding, if your lumberyard or home improvement store carries it.