Now that pegboard has entered the design arena, it's possible to buy decorative pegboard, such as the magnetic boards pictured above from PB Kids' Stanton Collection. Or you can go old school with pegboard panels that you can pick up at a hardware store. We also spotted this set, which comes complete with assorted hooks, clips, and plastic bins, at Overstock.
For mounting instructions, check out this post at Apartment Therapy: San Francisco.
Photo at the top of this post is from My Room: Baby MacDrake.