I know Green House Seeds Co recommends doing the paper towel method and this method works for a lot of people. However, some times people will lose their seedlings during the transplant process. I even see a lot of people have great success with soaking the seeds overnight in water.
My favorite way, which isn't any better then any other method, is to simply soak for 10-15 minutes in tap water, and then sow them directly into a seed starting mix that I watered earlier in the day. I also put them under the lights and set the light's timer for 18/6 right at this time. The reason I do the lights right now is so I don't have to constantly look over my seeds and rush them to the light as soon as they sprout.
I sow them and ignore them for five days. If they haven't already popped by the fifth day, I use a toothpick to turn over the soil and help the little guys out. The light also serves double duty by warming the soil.
Doing it this way avoids even the slightest chance of transplant shock and more importantly, I never get a lanky plant that needs to be repotted. But like I said, my way is just one way. Everyone needs to find out which way works best for them. Just like with cloning. I can never clone in potting mix. I always do better using a fast food cup & lid with tap water.