For labs/installations of many machines, or people who are dolts - um I mean newbies, I always recommend whatever the local flavour of Redhat/Suse/Mandrake/whatever.
However, for a few choice machines, machines that you spend more time with then should be legally allowed, I always recommend slackware (for a non high bandwidth connection) or gentoo (with high bandwidth). The flexibility of these last too is very rewarding for anyone who wants an uber customized Linux box.
And especially with slackware, you gain a lot of knowledge and familiarity with how things works, and how to fix things. This knowledge pays off it's debt quickly. For example, you might have a redhat buddy that has some problems with configuration GUI X, and you just go and fix it by hand.
LFS is interesting, but what's the big difference between it and gentoo? Just an extra step that's not very practical unless you're making your own distro.