Ed,
It seems as though you are asking for a methodology. That's hard. MLO is a powerful and flexible tool that can support a wide variety of methodologies. Even better, it will let you start with a defined methodology and then tweak it to better fit your own personal needs and habits. There's no methodology that works for everyone and no one can predict what sorts of methodological tweaks you would most benefit from without knowing all about how you work, what goes wrong, and what you wish for. You are already aware of GTD, so my suggestion is to start with a getting-started-with-gtd book and follow the steps, except whenever it says to write something on an index card or make a list ona piece of paper, use MLO instead. When something seems awkward, or something has more effort than benefit, or you missed a task you didn't want to miss, tweak the process. If you can't figure out how to tweak something, come back here and ask.

-Dwight

  * Does it work well for grocery lists or should I stick with paper?
When you make a grocery list on paper, is it hard for you to remember everything you need? If you use up the ketchup, you can pull out your phone and type "ketchup" into the grocery list without looking for and managing scraps of paper. If you are at a restaurant or friend's and have some delicious rutabaga fries, you can quickly add rutabaga to the same list. When you are getting ready to go shopping and you are looking in the closet at what's running low, maybe you should use paper or maybe MLO, depends on how fast you type versus write. I usually end up with paper but I check MLO while writing the list for a reminder that I want ketchup and rutabaga.
  * Helping pick a direction in the morning before that 1st cup of
    coffee is kicks?
I have found MLO better at reminding me what task is next for each major initiative than it is at picking which initiative to pursue today.
  * Is this better suited for mundane reminders (water the plants, take
    out the trash) or large projects (finish my basement, restore an
    antique car)?
I think MLO is great at both, and it is the very best at simple tasks (replace washer in bathroom faucet) that grow into projects (replace bathroom faucet) (replace bathroom sink) (repair flood damage in basement under bathroom)
  * Remembering recurring tasks that MUST get done TODAY (pick up the
    kids from daycare) versus tasks that really SHOULD get done
    TODAY(enter client billing for the day).
For the most part MLO does not say anything until you look at it. If you get all involved with replacing the bathroom sink and forget to check what else is due, MLO for the most part will not reach out and poke you. To avoid the OMG-I-forgot-to-get-the-kids experience you might want something more intrusive than MLO, like an appointment with an alarm and snooze reminders. You can put a reminder on an MLO task and a lot of people do so. I hate that because if you are not careful, got get times when several tasks are ripe at the same time all ringing the reminder bell at once which makes me crazy.
  * Tracking honey-do lists (pick up milk on the way home, "dad I need a
    check for the field trip next week")
That's great as long as you remember to check the list. Try using location alerts to show you, for example, the going-home list whenever you depart your work location/
  * spending one hour per week cleaning and organizing my hard drive
    (which will really never truly be finished)
MLO will remind you to clean your hard drive but cannot tell you how long you should spend, or have spent, or still need to spend.
  * paying bills on time
Excellent
  * writing policies and procedures for new business.
MLO will remind you to do it but does not help much with actually doing the writing.
  * Actually sending the XXX to the client like I promised.
Very good. What's even better is if there is a routine, or set of best practices around each customer deliverable (have someone else review for readability and typos, print a copy of the high quality paper, check envelope weight for appropriate postage, store tracking number with client record, check for delivery before deadline, call for client feedback, update billable hours, store copy of document in archive.

You can make a project with all of these steps and save it as an MLO template. Then, when you have a client deliverable pending you can instantiate a project from the template and start checking stuff off as it happens.
  * Starting and finishing that really important XXX, instead of
    watching the really interesting UTube video, that just came in my email.
MLO will remind you that xxx is important but will not block you from watching utube. You might want to check out the Pomodoro methodology, which will not stop you from watching utube but will limit the damage to less than 25 minutes.


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