Precision measurement of magnetic fields is at the heart of many important analytic techniques in materials, geology, biology, medicine, security, space, and the physical sciences. These applications require operation under a wide range of specifications regarding sensitivity, spatial resolution, bandwidth, scalability, and temperature. In this work we have developed the enabling technology for magnetometers based on nitrogen-vacancy (NV) defects in diamond which promise to cover a wider portion of this parameter space than existing sensors. We have studied how to prepare diamond material optimized for magnetometry, and we observed the basic optical and spin properties of the NV centers. Using a novel scheme inspired by new information about NV centers gathered from these studies, we constructed a sensor which improved on the state-of-the-art in a number of areas. Finally, we outline a plan for improving these sensors to study micro- and nano-scale magnetic phenomena currently inaccessible using existing technology.