
Remember the shop at your design school's ID department? You never did see extension cords in sorrier condition than at that place. The problem is the way people (and by people, I mean sophomores) wrap (or don't wrap) them up after projects.
Old-hand shop guys often have their own consistent way to bind cables without kinks. Take a look at the methods favored by Fine Homebuilding's aptly-named Tucker Windover, with text explanations, photos and video.
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and climbers...the first one is by far the most effective way to bundle ropes.
Keep in mind though, the best method for preserving the life of the cable is the over/under cable wrapping technique.
http://www.youtube.com/watch?v=JUz266TU9JE
This is awesome, and kudos to Megabyte for the YouTube link too! My OCD is kicking in just watching the photos; I was about to align all the DVDs on my bookshelf but that will have to wait--time to go bundle up all my extension cords! :)