What's the best way to hire someone?

I’d say interviewing the person would be the best. If you feel like the person is lying or that they’re shady, you could do a background check.

I value gut feelings just as much as qualifications, so I would interview a bunch of people and pick the one that has the best mix of both. I would also keep the infoz on the 2–3 runner-ups, in case the first pick doesn’t work out.

Craigslist ads or word of mouth. There are tons of people looking for work. As friends and family.

If you are not familiar with all the laws, you may want to go through a temp agency at first. They know how to screen people and how to make sure that you don’t get in trouble with discrimination.
They also handle all the payroll, taxes, and workers comp insurance. They also carry liability insurance if their employee turns out to be a crook or does something that injures someone.

I whole heartedly second what @Judi said: being familiar with the laws is a must, of there is the possibility of a super huge headache. (expensive headache)

when choosing someone though, I think people with previous work experience and references from their previous workplace to vouch for them are a safe bet.

Check out their references, ask for a police-check, go on your gut feeling after you’ve interviewed them. When you do the interview, ask “situation” questions, give the person an example of a situation they could be in and ask them what they would do…their response is usually a good indicator of their knowledge in the field and it’s also a good way to know if someone is lying about their past work experience.