Step 1: Answer the seven questions.  These questions help form an idea of the character in your mind.

1.	What is the characters name?
2.	What does your character love?
3.	What does your character hate?
4.	Who are his friends and family?
5.	Who are his enemies and rivals?
6.	What does your gnome do for the good of the community?
7.	What is your characters ambition in life?

Step 2: Select the characters Attribute and Trait package.  Note that characters with higher starting attributes have fewer traits and more failings.

Attribute Dice		Traits/Failings
d12,1d6,1d6,1d4||          5 Traits, 1Failings

1d12,1d8,1d6,1d4||        4 Traits, 1 Failings

1d12,1d10,1d6,1d4||      4 Traits, 2 Failings

1d12,1d10,1d8,1d4||      3 Traits, 2 Failings

1d12,1d10,1d8,1d6||      3 Traits, 3 Failings

1d12,1d12,1d8,1d6||      2 Traits, 3 Failings

1d12,1d12,1d10,1d6||    2 Traits, 4 Failings

1d12,1d12,1d10,1d8||    1 Traits, 4 Failings

1d12,1d12,1d10,1d10||  4 Failings

1d12,1d12,1d12,1d10||  5 Failings

1d12,1d12,1d12,1d12||  6 Failings 

Step 3: Divide your attribute dice among the four stats: Atheticism, Cleverness, Toughness and Shrewdness. Details on why each attribute is important is detailed below.

Athleticism represents a gnomes physical prowess. The typical gnome can lift around five to seven times their own body weight and move at about forty body lengths a second. So compared to humans, gnomes are extremely athletic for their size. While they can't ever hope to lift a human or outrun a cheetah it's not a question of capability but relativity of size. A gnome the size of a human would mop the floor of any Olympic gold medalist in track and field.  That being said a group of gnomes or even a single gnome can take on creatures much bigger then themselves when necessary. Athleticism is the dice rolled whenever a Gnome is actually physically challenged either through combat or physical exertion.

Cleverness represents a gnomes problem solving capability and knowledge base. While it's easy to say that a Dweller gnome with access to human books and the ability to read human language is smarter then a Wild Gnome without access to either they can both be equally clever in their own ways. Gnomes tend to think extremely quick thoughts compared to humans as a result of their drastically different metabolisms and short lives. As such compared to a human a gnome might seem very quick witted. 

Toughness represents a gnomes physical fortitude and ability to handle tough situations. Gnomes are by nature very tough nuts to crack. Their stout bodies and sometimes cheery look hides thick cords of muscle and flexible, tough cartilage (gnomes do not have a true skeleton). Toughness also represents a gnomes psychological and mental fortitude. Life is tough when it seems like the world considers you an interesting curiosity to capture and study or chew and digest. It's easy to think that some gnomes are quite depressed and suicide a constant. However gnomes are nothing else if not stubborn and willing to press on in even the most hopeless situations. Toughness is the roll that comes up when a gnome faces a dire physical or mental challenge that can cause them harm. Combined with Athleticism it determines how much fatigue and Health a gnome has.

Shrewdness represents a characters instinctual ability or natural caution. Shrewd gnomes can sense storms by the sweat in their palms, find food in the way local birds are circling above, or know that humans are close by the shaking in the ground. Shrewd gnomes are natural survivors and can sense things in another gnomes speech that gives away motives and treachery the other gnome might think that they're hiding. Shrewdness is the attribute rolled when instinct, common sense, and wisdom will reveal things to the gnome that his cleverness might keep hidden. 

Step 4: Determine your Traits and Failings. Traits are things your character is good at the GM assigns a dice rating to each trait based upon how common the trait comes up in play.  Common traits are rated low while rarer traits are given higher ratings.  Failings are things that the character is poor at and give a penalty die to the roll.  As before the GM assigns a dice rating to each failing with common circumstances having a lower rating then rarer ones.

Step 5: Determine Fatigue and Health.  Roll you Toughness and Athleticism and add the results together to find your Fatigue.  Your health is equal to one half your total fatigue rounded up.
Step 6:  Select your belongings.  Gnomes have differing views on what is appropriate for a gnome to own based mostly on their culture and community needs.  Below is a list of typical gnome professions and the things they may have.

Artist	Artists are rare in non-dweller communities.  Within those that have them Artists often have wealthier gnomes as patrons.  A typical gnome Artists is a painter and drawer.	Paint Brush, Pencil, Several Scraps of paper, Artisans Clothes, A set of paint or ink pots of all primary colors and black, A roll of Canvas	
Accountant	Accountants are rare in non-dweller communities however any community with a monetary based economy finds a use for a gnome good with numbers.	Pencil, Fancy Clothes, Several Scraps of Paper, Crude Abacus, Crude Work Desk, Work Stool
	
Bodyguard	A bodyguard can be found anywhere that a Gnome of some status or wealth feels the need for personal protection.  Bodyguards are tough and try their best to look the part.	A Club or Baton(1d4), Fancy or Common Clothes(depending on employer desires), Leather Armor (1d4), 	
Book Keeper	Among gnomes the Book Keeper is not one who has a similar job of accounting but one who handles all of the communities books, they are craftsman in book writing, binding, upkeep, and are almost always aware of every scrap of written knowledge a community has.  Thus book keepers are afforded status and wealth that may very well be beyond that of normal gnomes.	Pencil, Fancy Clothes, Several Scraps of Paper, A Bound Blank Tome, One or Two personal Copies of Written Tomes(subject up to player or GM discretion), Crude Abacus, Work Stool, Crude Work Desk, 	
Bird Mothers	Despite the name males have every bit the oppurtunity of being a communities bird mother as females.  Bird mothers have the unenviable position of raising, caring, training, and taming of the communities bird flock.  Their expertise is invaluable to any community that makes heavy use of birds for transportation or food.	Riding Leathers, Bird Harness, 1 Meter of Twine, One Pouch of Bird Seed, One Pouch of Mother's Powder, A Bird Mother's Medicine Kit, A Leather Bird Hood Sized for a Pigeon(other birds may be appropriate depending on GM discretion)	
Bird Rider	Bird Riders are the scouts and aerial warriors of a gnome community.  Riders are selected for their keen eyesight and sharp memory.  While not often as knowledgeable about their mounts as bird mothers are they still know enough to effectively care for their charges.  Often times they are tasked with finding new bird nests to replenish a communities dwelling food or mount supply.  	Hardened Riding Leathers(1d4), 1d6 Throwing Spears(1d8), On Pouch of Bird Seed, A Bird Mothers Medicine Kit, Bird Harness, One Meter of Twine	
Carpenter	For communities that are large enough to specialize in their professions carpenters are invaluable for their woodworking skills. Able to craft nearly everything a gnome community may need from wood  carpenters are artisans who take their work very seriously.	Woodworking Tools, Artisans Clothes, Sturdy Work Bench, Sturdy Work Stool,	
Cat Hunters	Cats are ranked amongst the deadliest enemies of Gnomekind.  Sleek, fast, smart, and silent a single cat can easily annihilate a gnome community.  Those communities that often encounter cats often have a specialist in dealing with this heinous threat.  Part hunter, part scout, and part warrior they know not only how to kill cats but how to make it look like the work of something else to fool their human keepers.  If killing the cat is out of the question they know of ways to deter cats from hunting gnomes and can even turn a cat to the benefit of the community.	A hunting crossbow(1d8) with 20 bolts, A long spear(1d10), Hardened Leather Armor(1d6),  A Rat Suit, one meter of twine, Common Clothes	
Diggers	Diggers serve tunneler communities.  They are not simple laborers but also experts on all things mining and underground engineering.  Diggers are responsible for the planning and building the community.	Workers Clothes, Mining Pick, Shovel, Pencil, Scraps of Paper, A bound journal.	
Hunters	Hunters often double in many communities as the warriors of the community.  When not trying to hunt down rats and other such creatures for food they learn and train in the various weapons necessary for the survival of their race.	 A Shortbow(1d6) with 20 arrows, A Short Sword(1d6), A Light Shield(1d4), Chain Mail(1d8),  A Rat Suit, one meter of twine, Common Clothes	

More professions are added in the completed version.

Step 7 The Little Details:  After deciding what kind of profession their gnome has, the player should take the time to think of other little details to flesh out the character.  The rule of thumb for Gnome is that if a character wants something, they can have it.  However such things will have little to no effect on any of the mechanics of the game.  Simply owning a special item does not make it easier for a character to complete tasks or succeed in combat. In fact, such things can stunt inspiration as a player will find themselves trying to make such an item work into their solutions or challenges rather than relying on their own wits.  The little details exist merely to add flavor to a character and give them quirks that make them memorable, not to make the game easier.