I did some searching last night as this seemed like an interesting idea. So far it looks like others have tried this with old cordless phones. Not sure if that is exactly what I was looking for. Maybe building it will be harder then I expected.
I know the paper and string method but that doesnt really appeal to me. I like electronics, might not be that good at it really but thats fine. If anyone finds some better options on building thier own walkie talkies let me know please.