What is the best way to prepare for the GMAT?

I really hate to see a question go unanswered , so here are two things that might help.

Hell, why not make it three?

I don’t think I can add any new knowledge to XOIIO’s answer, so here’s some test taking tips…
Make sure you get plenty of sleep the night before, reduce your stress so the information sticks, eat a decent but not too big a breakfast and take aspirin before you walk in to ward off any test/stress headaches and clear your mind.

Perhaps the question should be framed up, “What’s the best way to prepare for it without spending thousands of dollars on a commercial prepping program?”

I highly recommend Manhattan GMAT. www.manhattangmat.com They offer instructor guided preparation for 9 weeks (both online and offline options). In addition, they give you great access to practice problems and 6 adaptive tests (just like on the GMAT). If you are serious about getting the best score possible, the “do it yourself” approach will probably leave you less than satisfied. A course/materials liked Manhattan GMAT is a guided preparation from pros. Their instructors are great and material is very useful. It is pricy but worth it. Check it out.

Get a book. Practice. Sign up at universities near you that offer MBA programs for open houses. Almost inevitably, they will have an event about the GMAT. Go. Usually you can get a free how to ace the GMAT session out of them. Beyond that, practice. And practice. Practice in good testing conditions and poor ones. Figure out what you are good at. Practice it. Figure out what you are bad at. Practice that more.