As far as clay goes, I find it helpful, when making box-like shapes to use a flat object (credit card, book, etc.) to push the material into the form, the flat object's sufrace will give you the flat sides you desire.
You might also try assembling a hollow hammer head from cardboard. Basically, you just draw the six sides out on the material you're going to use, cut it out, fold the edges, glue 'em together, and voila.
How much work do you want to put into it? If you want to have fun with it get a small piece of steel the right size, sand it into shape (or use a grinder/dremel) make a small wood handle and paint it with a primer to seal it and then paint it to look like rock. For dents and details you can use a hammer to smack it for a while (softer steel would be better).
I'd say get a little block of wood and cut it up to whatever size you want. Drill a hole for a handle. If you want a rock effect, just get get something hard and start smashing it up, should get a dentish, rock like effect.
You might also try assembling a hollow hammer head from cardboard. Basically, you just draw the six sides out on the material you're going to use, cut it out, fold the edges, glue 'em together, and voila.
DTM's wood idea also sounds like a winner to me.
I've tried before but I can't get the sides straight.
umm.....sanding?
I've tried before but I can't get the sides straight.