There are two options. First is to buy complete fiberglass fenders and replace the steel ones with them. This is a lot more work than it sounds like because they will not simply bolt on. THere is a lot of cutting, drilling and fitting to be done. However it does guarantee everything will line up properly when finished.
The other option (which I will do) is to buy fiberglass flares and install them on the steel fenders. This requires cutting a few inches from the fenders along the arc of the wheel arch. The flares are then attached with a chemical glue and rivots. Once bondo has been applied and smoothed, simply paint the fender. From what I understand the only critical part is cutting the proper amount of metal away from the fenders. Some people have fabricated steel wheel well liners to protect the underside of the fiberglass flares but this is a significant amount of work. I plan to look into it but not sure I will go that far.