What’s the best way to publish a book?

[rickymyers]

I’m at the stage where I’m seriously thinking about publishing a book, but I’m unsure where to begin. I’ve been comparing traditional publishing, self-publishing, and other options, and each seems to have different challenges. For those who have actually gone through the process, what worked best for you? What should a first-time author avoid, and which steps matter most before deciding to publish a book?