The flat of a box-cutter blade does the job nicely as well.
I have the Model 1 vice block for the upper and it works fine, not absolutely required... I want to say $25-30 shipped but are only necessary if you are messing with the upper (free float tube install, low profile gas block installation, new barrel, etc..) and want to minimize risk of tweaking the upper using just wood blocks or padding in your vice (which many people also do without issue).
Assembling a lower shouldn't require any special tools unless you don't have roll punches or a light weight hammer & utility knife, though the stamped metal $2-4 castle nut wrench (and 1911 bushing wrench if you need it) combos are nice.. and cheap.. If you are following specs exactly you probably should use a torque wrench to properly set (and then stake) the castle nut.
Like a lot of things AR related, you CAN spend a lot on stuff including tools but you don't NEED to, in most cases.
