I highly recommend using a router with a hinge template.
I am using:
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You'll only need the 1/4" bit from this set
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A hinge template (use a metal one like this, not a plastic one): I got mine off eBay http://66.77.255.87/Images/VA%20Products/23457_VA/WEB_LG/23457_VA_lg.jpg
If you want to do the door latch part also, then you will need another template for that:
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This last item comes with a router bit that you will need to use with the template so you don't destroy the plastic (which flexes, which is why I hate it). I have never seen a metal one of these, but if you are careful it works just fine.
Then take all these items and practice on some scrap wood until you get it right. there are some good instructions available how to do this in the internet (probably on hammerzone.com).
I have never and will never use a chisel to make a hing mortise. That method sucks by comparison. And I didn't spend much to do it the right way.