I recently made a red underskirt as part of my outfit for the Riverhaven Costuming Challenge.
I chose to use cotton broadcloth due to budget constraints; linen or wool (even silk) would have been more appropriate, but much more costly.
I sewed rectangular panels together, leaving a gap at the centre sides open, which I hand hemmed. I also hand felled the side seams.
I added a tiny buttonhole bar at each side seam for extra strength.
I pleated the front and back panels into separate waistbands by hand using cartridge pleats. Once the pleats were sewn in, I released the gathering stitches to allow a more relaxed pleat. I hand hemmed the bottom of the panels, and added decorative twill tape.
I used the same twill tape as ties for the skirt. The front and back ties are tied independently (as seen on petticoats in the Tudor Tailor book) to allow for greater adjustment.