I HATE compiling an index

[Clark_Kent]

Do you use LaTex?  If so, it has a very nice index/glossary package.  It's easiest if you index as you write, but you can always add entries later.  One of the nicest things is that if you do any editing, it will reindex all your entries automatically. 

I know; I sound like a salesperson for LaTex.  However, it's free.

[Wahoo Redux]

Get snacks and a nice place to sit, maybe some music in the background.  The index experience needn't be so bad, after all, particularly if you baby yourself with something you wouldn't otherwise indulge in.

Old galley proof and Word document for me.

If you pay honestly, there is nothing wrong with employing a graduate student.

[bibliothecula]

I like doing indices. As you write, keep a list of the terms and names and such that you will want to have in the index. I keep this list in Excel and link cross-relationships in adjoining cells. Then when it's time to make the index, I have Excel alphabetize the list (keeping the cross-references intact) and then I export it to a Word doc. Then i search the PDF page proofs of my books for the terms and put in the numbers. It's pretty simple and very easy if you keep the list from the very beginning.