Because of the contest, I got my hands on some Sugru and it's pretty awesome. I've found a bunch of tips and basic instructions, but felt that they needed one place for newbies to read - especially the information that is useful to any project. I'm a newbie myself, so anything I find useful will be included. If anyone discovers any tips that I don't have listed, please comment and I'll add it to the Instructable.

The official website can be found here: sugru.com. You can buy it from the website and shipping is pretty cheap (a couple of bucks US) to anywhere because the packs are pretty small.

The technical data sheet is here: http://sugru.com/pdfs/FORMEROLsugru_TDS_OCT09.pdf

There is a plethora of information on this site: http://getsatisfaction.com/sugru/

And...here's their Facebook page: www.facebook.com

Step 1: What Is Sugru?

Sugru is awesome new stuff that seems to be able to do just about anything. It starts out like a modeling clay and turns into silicone after 24 hours. It will hold its shape but stay flexible and it bonds with almost anything.

It's waterproof and can withstand lots of temperatures (-60 °C to + 180 °C according to the website - that's -76°F to 356°F). That means when it's cured, you could use it in the snow and it can withstand boiling (but It's not food grade - don't use it on surfaces where it's going to touch food a lot)! Wow! It's also dishwasher-proof.

Is there anything this stuff can't do?

Step 2: Basic Instructions

Official instructions can be found here: http://sugru.com/instructions/

Get your project ready. Once Sugru is open, it will begin to cure in about 30 minutes. If you're doing a small project, you might want to find something else to use it on if you have any left over. (I did 3 things with 1 (5g) piece!)
Clean the surface - you want it to stick to the object, not dust or grease!!
Wash your hands first.
Cut open the Sugru along the dotted line. You can then peel the pack open.
Smush the Sugru in your hands for about 30 seconds.
Stick it on something and perform some feats of magic ;)
Wash your hands (you'll want to - my hands got a little gross)
Leave it to cure. They say a piece 3mm thick will take 24 hours (thicker takes longer, thinner takes less time).

Step 3: Tips and Ideas

SOAPY WATER will prevent anything from sticking. Oils will also prevent sticking, but might get messy. You can:

Dip something in soapy water before touching it to the Sugru to create a texture without getting stuck.
Wet your fingers with soapy water and then use your fingers to smooth out the Sugru for a nice smooth surface.

TEXTURES can also be achieved with these methods:

Another way to get it smooth is to press down with something smooth before it cures - glass or smooth aluminum foil would work.
Sand paper can be used on it after curing to get an eraser-type texture. I guess it doesn't work too well as an eraser though.
Get creative - something like a window screen might make a cool bumpy texture. I'd try the soapy water thing mentioned above.
The video here has a few examples. I included a picture below from the video.

TEMPERATURE makes a difference. It's suggested that you use Sugru at 21°C if possible (69.8°F). Warmer temperatures will cause the Sugru to cure faster, colder will make it take longer. Store uncured it in a cool place (the fridge is okay). It's also microwaveable once it's cured, but it might get hot in the microwave.

ELECTRICITY: Sugru is not conductive. This could be great in an electronic project.

CAUTIONS:

Sugru may leave a mark on surfaces or stain fabrics.
If necessary, Sugru can be removed by cutting off when cured.
Don’t use Sugru to stick up heavy objects.
Sugru isn’t suitable for use in direct or prolonged contact with food.
Keep out of reach of children.
Sugru isn't for use on surfaces that get a lot of wear (like the bottom of a shoe), it breaks down too easily.

ALLERGIES may exist. See their website for more information. If you think you might be allergic, you can still use Sugru - wear gloves while handling it and then when it cures you should be okay.

Step 4: Things It Won't Stick To

I'm hoping to keep this list updated as I (and others) find things that Sugru doesn't stick to.

Paper towels
Freezer paper
Brass
Polycarbonate
Polypropylene
Nylons
Saran Wrap (aka plastic wrap, cling wrap)

Also, note that on surfaces that get a lot of wear (i.e. the bottom of a shoe), Sugru won't last long.

Step 5: Colors

There are only four colors right now. I guess they're easier to manufacture than lighter colors, but it sounds like they are working on more. There is a guide here that shows how the current colors (black, orange, blue, and green) mix together.

Another awesome idea I saw here involves mixing glitter into the Sugru.

Apparently, you can make it glow in the dark! Check it out here.

I included pictures below of the things included in those links just in case the links ever break.