Homebrew PCBs

I've seen this done and was wondering if anyone has some words of 
wisdom as to how to do it.  Basically, I want to attach a ribbon 
cable directly to a PCB.  The non-PCB end will use an IDC connector 
but I can't afford the size of header pins on the PCB.  I've seen 
several LCDs that have 50 mil spacing hole/pads.  The insulation was 
stripped of the ribbon cable, the wires inserted in the holes and 
soldered.  The solder is about 1 mm high.  I need 2-3 mm clearance so 
that works for me.  Clearance on the bottom is a little less a 
problem but even SMT connectors are too big.

Are there special tools for this?  It sure looks tricky to do.  What 
size holes/pads? 

Phil