This is, as you said, quite a big question. Here are some of my thoughts:
Developing Environment
First of all when I start a new project I install Sitecore on my developing environment and I make sure everything works. Either during installation or after I place the databases on a separate SQL-server and change the connectionstring accordingly.
I open up Visual Studio and create a solution and include the files needed. I create some kind of HelloWorld rendering and try building the solution so that I can verify that everything is working as it should.
When everything is up and running I create a zip-file of the whole solution, including the data-folder. Now it is time to add this to some kind of version control system, in my case Subversion.
I add the zip-file to subversion and also add all files that I think will be changed during the project, usually I tell subversion to ignore the sitecore folder, this speeds up performance drastically when checking in files.
After I perform a commit-action the other team members of my project can check out the code and start developing (after unzipping the zip-file, off-course)
We all work towards the same database although this goes against Sitecore recommendations, we havent had any problems with this approach however items in GUI created/changed by one developer take some time before it is created/changed for all the others.
We could off-course develop several different projects using the same Sitecore installation but since almost all customers use different versions of Sitecore we have found this approach a bit cumbersome.
Often we set up an automated build-server but this is a whole other issue.
Reusable code and renderings
I would like to say that we create neat packages based on the same codebase that gets reused between projects but unfortunately we are not there yet. Today it is a lot of cut and
answered 2010-01-27T10:37:28.560