The photo below shows my first attempt at North American Smocking and then how I incorporated it into a stole made for a funeral.
I picked up one of the best instructional books ever: The Art of Manipulating Fabric by Colette Wolff. Absolutely the best money you will spend. If you have a hard time finding it, please try eBay or abebooks.com, as it is really worth the hunt. In it, the process, along with many more, is explained in detail.
If you would like immediate instructions I invite you to explore Black Bird Blues blog: http://blackbirdblues.livejournal.com/56295.html
They have done a great job laying out the process, which is easy and gives lovely results.
I hope that helps those of you who are inquiring!