I use Endnote as my referencing software because UNE provides it free to postgrads and the wonderful library staff run an excellent training course on using it as well as providing very useful notes on their website and being willing to answer questions when you get stuck. I can even take my laptop up to the library and one of the librarians will show me what I am doing wrong. 🙂 I will therefore continue to use it – that and I have about 600 records in my Endnote library.
However, not everyone is in such a fortunate position and Tim Bulkeley over at Sansblogue has two posts on Zotero, a free bibliographic software program available on the web. The first gives an overview of how it works on the web and the second has two animated film-thingies (aka instructional videos) that show you how to use it and how to integrate it into your word processor. This sounds like an excellent resource for researchers on a tight budget and/or attached to an institution with different priorities for their spending.