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SEO: Proper setup for domain forwarding?

Last Modified: 2010-10-05
I have a number of domains that I purchased last year with keyword variations that I would like to point to my website.  I tried using GoDaddy.com's internal "domain forwarding" feature but I read somewhere that the way they set up the 301 redirect isn't the best way to do it for SEO purposes.  Then, I set up hosting accounts for each domain on a separate dedicated server, created .htaccess files redirecting the URLs with 301s, etc. but I'm not sure that this is the best setup either.  So, my question is this:  What is the absolute best setup for redirecting one URL to another as far as SEO is concerned?  
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