A better, but perhaps more expensive alternative (Score 1)

This technique is actually being promoted by a great hobby PCB manufacturer. The company pcbexpress (http://www.pcbexpress.com/stencils/index.php) will make a stencil for your custom board. Then you use a squegee to apply the solder paste to all the pads, palce the parts, and then bake! Wha La! Easy SMD soldering. The only problem is if you have parts on both sides, when you back one side, the parts will fall off the other :( It's quite hard cleaning up all those tiny capacitors off the bottom of your toaster over.