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I use just a text document where I move books from the unread portion to the read list. I enter a completion date so I can look back to what I've read and when. For unread books and those I want to reread, I keep a short prioritized list at the top of the document. I occasionally update and reload this document onto my Reader so I don't have to rely on memory to know what's next.
Perhaps unrelated, I made an initial go of using LibraryThing.com. It lets you keep an online catalog of books - either of all that you own, just the ones you like, or a hypothetical collection. The appealing part to me is then the ability to match those catalogs to other people's catalogs to see what else they have. I'm always looking for recommendations of good books with a similar quality or feel to some that I have already read (Hesse, for example). This is perhaps an odd way of doing that. I could imagine that it or some other site exists that will let you sort your catalog by a read/unread tag.
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