Thanks for the replies people. I think with my current study habits and after reading some of the other posts a bit, I'm going to try to use the Pleco Dic flash card program for a bit since it's easier to set parameters (e.g. test pinyin but not character etc.) and repetition spacing does have benefits.
Right now I'm just trying to learn ten characters a day, every day. No two character words, just single characters. What I do is pick up a book, newspaper or magazine; read through and note the first 10-15 characters I don't know or am not sure about; convert them into flash cards; then test myself a couple of times throughout the day. Only takes about 20 minutes a day to set up each new list. Since each list is only 10-15 characters, it's easy to do lots of short tests in a single day. This way, even if I only make lists of 15 characters two out of three days a year, I'm still learning almost 3,000 characters. And even if I only retain half of those, it's a still an extra 1,500 characters on top of the ones I have. Another reason I'm going to try the Pleco flashcards for a bit, is this would work well with some repetition spacing, then I'd just use Flash! to review all my old cards.
It's all about short-term achievable goals.
To test my ability to write the character i test myself on the pinyin, then "write" the character in my head, counting each stroke as I do it. Even if I'm sure I know the character, I still count out each stroke. The counting makes it a very deliberate process, and seems to make them stick better. Yea, writing it out of course is good too, but this way lets me improve my writing with hands free (walking, on the bus etc). Seems to work pretty well, let's see if I can keep it up.
Mikelove, I'm pumped about Pleco 2, it looks really good and the flash card labels should make it much more manageable for the mildly committed student, can't wait to try it out. Its also good you can leave a test and go back to it later.
In Pleco 2, can you use hardware buttons on the treo to activate "音 and 意" in addition to "right and wrong"? It would be handy to just be able to use hardware buttons for those so it can be completely one handed use.