Hi Colleen
You can chart one of two ways - the easiest is to draw your design on graph paper. This is very easy, as you just draw straight onto the grid.
The other option is to use a charting software program - my own personal favorite is PC Stitch. This lets you say what fabric you'll be using, and you have a wide range of thread palletts to choose from.
The big problem I find with software programs is that they are a bit clunky to use - very, very hard to do small back-stitching details, as you have only your mouse to control things. I tend to do the main design, then print the design out and hand-draw in my backstitch details.
That said, PC Stitch also has a wonderful alphabet feature, where you can just choose the type of alphabet, type in what you want, and it charts it for you.
The best thing about the software programs is that when you print the file, you get a very professional looking chart, with instructions and floss list.
PC Stitch is at the cheaper end of the market, but is very good. Another of my favorites is Stitch 2000.
You can find details of PC Stitch at
www.pcstitch.comHope that this helps