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I mainly download via http://baka-updates.com/ , http://animesuki.com/ ,http://a.scarywater.net/.

I use Windows media player 10,VLC, and media player classic with codec pack.

The store Moviestop,which is owned by Gamestop,periodically sells their used anime for 40% off. I was able to get the FLCL Ultimate edition for 22 instead of the retail 65.

My dvd player plays divx so I keep my files in .avi and fit entire seasons on 1 disc.

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@ Sean T. - "Mostly streaming... http://www.surfthechannel.com/cat/61477.html"

Just visited  surfthechannel.com.  The website uses downloadable player software called ilivid. Users have to be careful because apparently this comes with malware which installs software you don't ask for. 

Lots of negative reviews on cnet.com - http://download.cnet.com/iLivid-Download-Manager/3000-2071_4-751561...

We tend to buy the DVDs if it's something we really want to watch. My hubby downloads, but then he watches such weird stuff, it's the only way he can get it.

Another good place to pick up anime DVDs on the cheap is at www.deepdiscountdvd.com I picked up the last two parts of Toward the Terra and the movie of the same name from them at almost half what Previews or Best Buy was pricing them at.
So does this one: http://anijunkie.com/
i get most of my stuff from http://www.narutowire.com/ and youtube but youtube kind of sucks
How I forgot about good old crunchyroll...somebody do a kamahama or jitsu quick...

Crunchyroll has been up for years and way better than youtube for anything asian
My local Hastings Books & Records (I zipped through the meager Anime holdings at Blockbusters in a few weeks), and more recently, Netflix...both rental and also streaming video on demand.

I used to live in Houston back when ADV Films hosted a weekly Anime night at West Oaks Mall Alamo Drafthouse Cinema (Tuesdays)...that was awesome because sometimes you would get to meet the English directors, the translators, and sometimes some of the voice actors based in Houston. They had a drawing for boxed sets and DVDs, and I did actually win one of the early volumes of Gilgamesh one week.

I love that FUNimation has picked up the ball and filled the vacuum when ADV hit the skids (plus they've continued to give gigs/work to my favorite Houston-based actors...); FUNimation actually has brought back Free Anime nights at West Oaks Alamo Drafthouse Cinema, still on Tuesdays. I wish they did stuff like that closer to their corporate HQ in Flower Mound, which is close to where I now live in Denton, Texas.
Fansubs 9.9; Or borrowing them from a friend who happens to be a fairly wealthy impulse-buyer. I have no money, and anime is too freakin' expensive in this country.
I used to download it through scarywater back in the day...but I haven't been at my computer much to download more stuff recently. So I depend on Netflix to get me what I want, and also used sales at places like F.Y.E. (running a buy 2 get 3rd at 50% off on all used when I was in yesterday).

I need to download again...I miss seeing it before it gets huge over here
http://www.hulu.com/genres/Animation-and-Cartoons/Anime?type=tv
http://www.crunchyroll.com/
http://www.animefreak.tv/

Those are my top three ways right now. Crunchyroll finally broke down and went legit, but they still have a decent selection of anime and they've really got a near-lock on the Asian drama/live action bit. Animefreak is good but the high-def streaming can stutter if you don't let it buffer enough.
Hulu is... hulu. I like that they generally have more subs than dubs.

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