Step 1: Finding textures
First we need to find Minecraft's textures. For this you should use WinRar, 7Zip or some other unzipping program to open the minecraft.jar file and extract the textures. For this, you have to have Minecraft installed on your computer. If you do and you have Windows 7, then you should be able to find the file in Appdata > Roaming > .minecraft > bin. Find "terrain.png" and extract it. If you don't have Minecraft or can't extract the files that way, you could try using google image search or normal search and search for something like "minecraft default textures" and download them but know that doing that is kinda illegal. I use to supply the textures through this tutorial but then I discovered that they were a part of the .jar file, which is illegal to redistribute. The best way is to extract the textures from your own Minecraft.
If you want to use a texture pack instead of the default textures, then find the "terrain.png" file and it should work the same way.
If you're using default textures, you can't go to Blender just yet. The grass in Minecraft is different colours depending on biomes so the texture file has the grass as a black and white image. This lets Minecraft change the colour of it as it pleases. What I did to solve this was use Paint.NET (free software) to colour the texture green so that we can use it in Blender. Try to colour the side of the grass the same colour for consistency.
Step 2: Texturing a Blender cube
Now we are going to open up Blender Two point whatever you currently have. I will be using 2.62, the latest at the time of updating this tutorial. If you don't already have it then you can get it by following this link: Blender 2.62
Now that Blender is open, we will keep the default cube. It will be our first Minecraft cube. Go to the panel on the right and click on the "Texture" tab. There is already a default texture that doesn't do anything. Go ahead and change the type from "None" to "Image or Movie". In the Image settings under the type setting, click the "Open" button and select the "terrain.png" which you extracted or found.
If we render the scene now (by pressing F12), we will see a few problems.

Firstly, one of the sides of the cube is pure black. When we make a scene out of Minecraft blocks later, we can fix that up properly, but just for testing things before that it would be good to be able to see all sides of the cube. The reason the side is black is because there is no light reaching it. The only light source is the default light spot. To fix this problem, go to the "World" tab and enable "Environment Lighting".
Now our cube is lit up nicely.

The second problem is that on the sides of the cube, the texture is just a single line that has been stretched along the entire side of the cube. The other problem is that the entire texture sheet is put on the cube while we only want one of the small textures of the sheet on the cube. Both these problems can be solved the same way. We have to change the way the texture is mapped to the cube.
First we go back to the texture tab. If nothing appears then the texture is referring to the world tab because that is where we were last. Click the "Material" tab first, which is the one just before the texture tab. Now the texture tab should refer to the material. The material is what defines what the object (the cube) is drawn as. Now in the texture tab, go to the "Mapping" settings. Change the Coordinates from "Generated" to "UV". UV is the coordinates that we will define ourselves. We can set each side of the cube to a specific place on the texture sheet.
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