Most times I see people try to use linked lists, it seems to me like a poor (or very poor) choice. Perhaps it would be useful to explore the circumstances under which a linked list is or is not a good choice of data structure.
Ideally, answers would expound on the criteria to use in selecting a data structure, and which data structures are likely to work best under specified circumstances.
Edit: I must say, I'm quite impressed by not only the number, but the quality of answers. I can only accept one, but there are two or three more I'd have to say would have been worth accepting if something a bit better hadn't been there. Only a couple (especially the one I ended up accepting) pointed to situations where a linked list provided a real advantage. I do think Steve Jessop deserves some sort of honorable mention for coming up with not just one, but three different answers, all of which I found quite impressive. Of course, even though it was posted only as a comment, not an answer, I think Neil's blog entry is well worth reading as well -- not only informative, but quite entertaining as well.
Linked lists are very useful when you need to do a lot of insertions and removals, but not too much searching, on a list of arbitrary (unknown at compile-time) length.
Splitting and joining (bidirectionally-linked) lists is very efficient.
You can also combine linked lists - e.g. tree structures can be implemented as "vertical" linked lists (parent/child relationships) connecting together horizontal linked lists (siblings).
Using an array based list for these purposes has severe limitations: