"How do I work out the best psi?"
based on what others do....

it's somewhat a case of trial and error and experience and you can work within quite a large range but not see that much difference
it's marginal how much quicker you'll go at higher pressures - certainly when you get past 100psi or so. high pressures should mean less tyre contact with the road so more speed, but as pops says, the science here is a bit sketchy. you're also at a greater risk of a pinch puncture should you hit a pothole with high psi (assuming you're not on tubs)).
the other issue with puncture frequency is type of tyre (kevlar reinforced ones tend to be more puncture proof), age of tyre (old ones become thinner so more prone to punctures), tube quality, and of course road surface/debris etc.
Edited: 30/04/2012 at 12:06