* Have circles corresponding to groups of people which match groups that you would chat with in your life; e.g., particular groups of friends, family, and so on. Don't obsess over how to partition people; if someone fits naturally into both circles, put them in both. These are your "sharing circles," and are great both to read (you're now hanging out with just this group!) and to share with.
* Have other circles corresponding to groups of people you like to read, but don't necessarily want to follow or specifically share with. e.g., "Random interesting people," "Musicians," "Friends." (See how that's different? All your friends in one pile, rather than chopped up.) These are your "viewing circles."
* A "local people to hang out with" circle can be very useful when you want to see who's up for dinner.
* Create a couple of empty circles for your own purposes -- e.g., "drafts" or "bookmarks." That way, when you come across something that you want to save for your own reference, you can share it with that circle, and only you can see it.
* If you have a lot of circles, give them slightly layered names. "Sharing: College Friends", "Sharing: Extended Family", "Viewing: Tech Press" will group circles together for easy access. (This is a temporary hack, of course, until there's a better way to do this -- but it's easy to rename your circles later to get rid of this)
* Important point: When people you don't know start following you, don't sweat it, and don't add them to any circles. Circles are useful when you want to follow someone, or when you actually have a relationship with them and want to share things with them. If people are just following you asymmetrically, that means that they want to see your public posts. Basically, they're your fans. :) You can see what they're posting in your Incoming stream and then add them to circles if you decide to later on.
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