My wife and I actually built this the summer of 2011 after my sister (ferbit on this site) told me about Ana-White.com. I have to say it turned out awesome.
Note, we used pine here partly for cost as this was our first try ever building our own furniture and we didn't know if we'd totally fail at it but also because the cedar at our Home Depot and Lowes didn't have the nice clean edges that the pine did. Also, the paint counter assured us the paint we were getting would protect the wood against the elements. Time will tell, but we are also planning to re-paint every couple of years to keep things looking fresh as well as "just in case"
Believe it or not when we built this we were living in an apartment (granted one with a very large balcony) in a downtown area (I wish I still had the pictures but I can't seem to find them anymore) The neighbors didn't seem to mind as we got all the cuts done as quickly as possible during the middle of the day. We got all of the cutting and drilling done in one day. The Kreg Jig my sister recommended is really what made this project possible. I don't know how we would have done it without it. The Second day was all about assembly and the following weekend we bought some saw horses with special little pointed risers specifically made for helping with painting. For paint we went to Home Depot and just asked for what they recommended for outdoor furniture in the Seattle area. Two coats later with some drying time and we had this amazing set.
The coffee table btw, is simply a highly modified seat from the sectional.
Now that we've moved, we're planning to build a second set this summer as I like to hold BBQs and invite lots of friends and family so a single set this size just isn't enough :-)