First, the staff must be masterwork, but not magical (it can be enchanted later). The imbuing ritual costs 500 gp, and is usually focused on a gem set at the top of the staff. It takes 24 hours, and after that the staff is treated as a magic item (it then has hardness 5 and 15 hit points, and uses its creator's saves even when unattended; Im not sure, but I don't think it works for anyone else trying to use it). The 1st level abilities are that it can deliver touch spells (e.g. you can attack someone with the staff normally, and on a successful attack roll you also use the touch spell you cast), and it can use cantrips - thrice per day it can use light as a standard action (turning that off is a free action). It can also hold a single cantrip decided upon during imbuing, and can cast that once per day as a standard action (the DC is always 10). All of these are otherwise cast using the owner's caster level.