I know this probably sounds really stupid,
but how exactly do you make a band.

I'm a guitarist (preferably lead), but any suggestions on finding a band/ members for a band. Also how should I advertise etc.

Lastly how do you get place to gig (do you approach people or what?)

Anyway some help!
You'll have to learn a bit more about the music scene in your area.

There will be websites that are popular for finding musicians. Craigslist or gumtree are common picks, but it can differ between areas.

For gigs, some like to be approached directly, others through promoters or booking agents.

Why not go to your local music store and ask? Their advice would be more helpful and specific than the advice we can give you unless you happen to live in Canberra, Australia. If this is the case I can help you out.
And no, Guitar Hero will not help. Even on expert. Really.
If you're in the UK, it's worth checking out joinmyband.co.uk - there are probably equivalent sites in other countries.
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It depends.

If you live in a big music city, you could throw a rock and hit someone who plays an instrument. When I lived in Columbus, everybody was in multiple bands and everybody was down to jam with everybody else. There are shows every night of the week and a lot of venues to play in. Hell, I joined a band and was playing shows within two days of moving there.

I now live in a town that really just has a tiny indie scene, and like two venues. It's pert near impossible to find band members. Nobody wants to be in more than one band, there's nowhere to play, and everybody just wants to play weird indie shit.
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Thanks guys in from the UK so i will check out that site, but yh I guess Im not that old but I know loads of musical people just not peeps for a band (they play stuff like sax,flute etc)
Friends mostly. Everybody knows a friend of a friend of a friend who knows guitar or drums or whatever. And with power of facebook, you can easily ask them. And even if they are not gonna join, they probably know more people that play the same instrumens, and that leads to new potential members. Just make sure to ask every friend or aquantance you have, and then go from there.
Also try some music pages where people post ads looking for members, and post your own. But in my experience, the first approach gives way better resoults. After a while you realize that, at least inderectly, every musician in your area knows all the others, so its kinda a little network of people.
Joža je kul. On ma sirove z dodatki pa hambije.
If your drinking age, hit a few open mic nights, as they usually have a load of other musicians that you can get to know and chat too. So gives the opportunity to find band members, but also ask the people their about the local gigging venues, etc. Also, once you do get some band members, an open mic stint is a good way to start getting some live experience, by playing a few songs and seeing how it goes down. Plus, I agree with Gary, joinmyband is a good site for the UK. I've used it on a few occasions quite successfully. Good luck.