I prefer to use it like I would a normal towel, with a slight twist. I use the 'ole "use water to dry the car" trick, then blot the majority of the water with the BBT. On some of the larger, flat panels, blotting isn't real efficient, so I use the BBT like a normal towel, wiping gently.
The general rule of thumb is "the less that drags across the paint, the better." ;-)