Punching with a hammer? I'm sure this is just a matter of semantics. Sorry, but now I'm really confused.
What I meant was that after I got the eyelet through and turn it over, I would have to use a regular hammer to punch the back of it down.
There are actually 2 steps to using an eyelet.
1. punching a hole in the paper/project
2. setting the eyelet (squishing it down)
As I said above, I use the Making Memories universal eyelet setter tool.
There are lots of eyelet tools out there now. Check out the resource tab at the top--there are articles (and maybe videos) about eyelets that show some different tools.
I have heard of people using a large phillips screwdriver to set an eyelet (insert the tip in to the back of your eyelet, and hit with a hammer).