Composting

I'm thinking of starting up a composting bin for our household. We have lots of organic garbage including banana peels, egg shells, and watermelon rinds, so I figure they'd be put to better use as fertilizer rather than ending up in a garbage dump.

I saw this nice little bin at organize.com, which is handy for the immediate storage of compost and can be kept in the kitchen. I'll have to investigate a larger bin for outside though. Are you composting right now? What methods do you use, and what tips do you have? My dad has been composting for many, many years, long before it was the hip and "green" thing to do. He simply used a garbage can with a lid tied on it, and he kept it on the back porch near the kitchen door. I think it's still there....