I like making knives out of GOOD files. That means one with a brand stamped on it and is made in the USA, England or Germany. I first anneal the file in my charcoal grill. I do this by laying out a layer of charcoal briquets, place the files, usually several, on this layer, place another layer of briquets over the files, sqirt lighter on the pile and set it on fire. This next step is VERY inportant. After the charcoal turns white, I put the grill on and cook a bunch of burgers, chicken, pork chops, steaks or whatever. Don't disturb the charcoal and leave the lid of the grill open. the next day take the files out and store them until you are ready to make a knife. The charcoal will heat the files and the ash will insulate them and let them cool slowly. You can bend them when you take them out.
When I shape them, I start on a bench grinder and get it shaped like I want it. Then I grind the teeth off of the blade section. I leave the teeth where the handle will be. There is no reason to spend the time grinding them off if they are covered up and it's kind of neat to be able to see them next to the handle if you use scales. Don't put the final edge on until after you finish the knife. Otherwise you may melt a chunk out of the thin edge when you harden it. Get the knife almost finished and all of the deep scrtches and grinding marks out of it, then harden it. I heat the entire blade; back, handle, blade, everything, to a red, non-magnetic heat and quench it in water. After it cools, I put it in the oven in the kitchen and temper it by bakeing it for about 1 1/2 hours at 400 degrees. Then I turn the oven off and leave it in the oven until it's cool. Then take it out, finish the edge, the handles, do the polishing and enjoy. If it doesn't temper right, I re-harden and re-temper it. This is not the only way and probably not be the best way, but it's the way I do it.