Hello Newby :)

I guess you will get lots of different answers, and that means that the 'best practice' is pretty individual depending on what your own personal set of skills contains. 

For me, I like to follow a process somewhat close to what's described in the book 'A Technique for Producing Ideas' by James Webb Young. Essentially:

5 Steps to Idea Generation

Step 1: Gathering Information

There are two types of information to gather:

Specific

Gather as much information as possible on the topic of interest
Write down the information on 3×5 index cards, one item per card
Classify the information by sections of the topic of interest
General

This is an ongoing process throughout your life
Record any interesting information you come across in a scrapbook or other filing method that makes sense for you
Step 2: Working Over the Information in Your Mind

Look at the information you gathered from many different angles
Synthesize the information
Merge two facts and see how they fit together
Connect the information with what you already know, nothing exists in a vacuum
As tentative or partial ideas come to you, no matter how crazy or incomplete, document them on the  index card, one idea per card
Do not stop until you have at least one partial or incomplete idea
When everything is a jumble or it is pointless for you to do additional work, it is time for the next step
Step 3: Incubation

Turn over the problem to your  subconscious mind
Work on an unrelated task or do something which stimulates the imagination and emotions
Step 4: Eureka! I have It

When you least expect it, the idea comes to you
Step 5: Shaping & Developing the Idea

The idea will unlikely be ready to be implemented as is
Subject it to criticism – test it, then refine it
5 Great Ideas

An idea is a combination of old elements
The capacity to combine old elements into something new is dependent on the ability to see relationships and make connections
Build a reservoir of knowledge, which is filled with life experiences, facts and other information
Learning is a lifelong process
Constantly expand your experiences personally and vicariously

grrrr. Archinect didn't post my comment as I wrote it... so I'm sorry for the above! Not sure about the spacing either... 

I meant to add that this process is highly variable depending on what you work on, and it's applicable to nearly everything. 

For gathering information, this would be the time to make all your base drawings and models: site plans, sections, context drawings, 3D model of the context, working physical model (I've never understood people who only make site models once the project is complete... seems a complete waste of effort if it's not helping you figure things out!)

At this point I also do generalized research about the topics I'm interested in pursuing in my project: Themes like 'remediation' and 'waste-water systems' and 'habitat restoration' for example. I also look at various points of view and different related projects. Criticism of one viewpoint may give you a basis for argument for your own viewpoint. You only get to know what your viewpoint is by comparing it to the viewpoints of others.

You can try some of the methods Christopher Alexander suggests for visualizing: write stories from the point of view of users. What do they notice? What is the light like? What are the most important parts of the area? How are they anchored to the space? Making some simple collages about how you want people to be able to use the space could come in handy here for explaining your intentions.

Step 3 might sound like a luxury because we often don't have much time to do our projects. But even if you can focus on something unrelated, but still creative or inspiring, for 1 or 2 hours a day, it really helps. You are thinking about the problem 'in the back of your mind.' 

Step 4 might sound unlikely, but given that you have already gathered a lot of information and started testing how it relates, there are probably lots of half-formed ideas floating around waiting for the right combination of thoughts to bring them out. I wouldn't call it a 'eureka' moment so much as a feeling that the direction you are going in is the right one. You might have a burst of several ideas, several possibilities. You have to then use step 5 to choose which ones are most in line with the intentions of the project, and develop them from there. 

I like this approach because it offers a framework for creative thought. It's a lot more reliable then anything else I picked up from school. Hope it's helpful to you :)

Borrow from your classmates, peers, students who in 2nd, 3rd yrs; visit offices and ask how they work.  Be curious and ask questions, you'll make good contacts for when you graduate that way too.

I agree with what everyone's said, but I'd also like to add that a large part of "completing flawless models" comes from, well, a lot of  flawed models. Face it, you will make some poor decisions, but learn from those errors. The best way to learn how to ride a bike is to hop on and go for it. You will fall, but in time you get more comfortable and adept at riding. It's a rare person who can just stand there pondering the best possible way to approach before acting, and then hop on and ride like a pro (trust me, plenty of incredibly talented, famous designers have had their fair share of shitty work). Now is a great time for you to learn from as many experienced people as you can, experiment with different ideas, take some risks, and figure out what worked and what didn't. I know that's not very practical advice, but don't be afraid to screw up every now and again; in the end, it will make you a better designer.

hey, 

thank you all so much. this is really helpful. I'm trying to trust in the design process and put in the perspiration to hone my talents but the learning curve has been steep. i do feel like i'm gradually getting better at communicating my ideas visually.

  Stephanie, I'm totally printing this page and  incorporating this into my process :)