I use the quilting tool by wilton.I think it is called the cutter/embosser. I have heard some people also use the knitting stick to create that quilting effect.
As for going about doing this....just cover your cake board in fondant and decide your quilting pattern and use the quilting tool. It should be fairly easy.
Hope this helps.
You can see in my photos the black and white shoe cake has a quilted board. Its really easy, but effective. I measured 1inch spaces all round the board on every side then joined them up diagonally with a set square using the pme embossing wheel (example here http://www.pandjkitchens.co.uk/products/details/3177.html)
I have used the Wilton tool but i dont get the "puffy" quilted effect that some cakes have. 
you quilt the fondant with a lot of buttercream under or just use thick fondant??
I want this effect
http://elmersgardens.com/images/WS144-21.jpg
but I got this plain effect 
http://sphotos.ak.fbcdn.net/hphotos-ak-snc4/hs1139.snc4/148140_177052248972834_117274158283977_615040_8231036_n.jpg
Quote by @%username% on %date%
%body%