I'll send this by email to spare you reading more rants in the newsgroup.....
I've done a lot of stone walls over the years. I love the look and durability of stone, and since I live in the Granite State, it just makes sense.
I've done both manufactured block and natural stone. The block is easier to stack but the look of natural stone is much better. For 2 foot high walls, either will work fine, without much in the way of special drainage or support. It's at 4 feet or more you start to need extra thought.
First step: find a local stone yard that has lots to choose from, knows their products, and can give you advice on the hoof. I have two, and they are invaluable. For natural stone, choose a nice flatstone like Pennsylvania Blue, which I made a nice 18" high garden out of once. It stacks very easily. Just pick stones that fit together one at a time, and soon the wall is up. No rocket science at all. Block is just a little easier since every block fits perfectly.
The one key is: BASE PREPARATION! Make sure the base is flat and smooth, and has a couple of inches of either stone dust, composted granite, or mason's sand. that will give you a nice flat base to get your first course down. If the first course is crooked, the entire wall becomes even more crooked. For a 2-3 foot wall, plan to spend half your time getting the first course down right. The required tools are a 2 or
3 pound deadblow (rubber) mallet, a long level, and a good pair of gloves. Stringing up mason's line to keep your lines straight helps, but doing it by eye is just as good for a small natural wall. And dont be afraid to pound HARD with that mallet. Gotta show the stones who's boss! (But keep your thumbs out of the way, don't ask how I know!) Seriously, it will set the stones nicely, and help keep them level and straight. You can use a brick set (kind of a chisel on steroids) to reshape or trim either stones or blocks.
The last thing to think about is weight. Some of the stones/blocks are very heavy. I've seen (and used) ones that are 90 pounds. Trust me, that gets old fast, especially in July. My last two walls used 20 pound stones, which were much easier to handle all weekend.