The crafting is very easy. For the clearing block you only need three tools made of the same material (wood, stone, iron, diamond). In a crafting table you put a pickaxe in the top middle, a axe in the middle left, and a shovel in the middle right like so:
The weakest is made out of wooden tools and clears a area of 8 by 8 by 7
The next is the Stone Clearing Block and it cleans a cube of 16 by 16 by 12
Then comes the Iron one. That one clean a block 24 by 24 by 16
The best one (and very expensive) is the diamond clearing Block. That one clears a massive area of 40 by 40 by 30!
To craft a Water Replacing Block you need one normal clearing block (wood, stone, iron, diamond), a bucket and some dirt blocks. You have to put them in a crafting table like so:
In the middle the clearing block and at the bottom a bucket. Around that dirt and you get a water clearing block. Thats it!