What is the best way to digitize old photographs?

I'd suggest using a DSLR camera instead of a scanner because there is a very distinct difference in quality and resolution.
But you need to keep in mind that the lighting in the room, colour balance and a tripod can be very decisive in the outcome of the quality of photo you shoot.
I've done this before and with more satisfying results than using any normal scanner.
A bit of touch-up with any version of Adobe Photoshop ( Here's an older legal free version link: http://www.techspot.com/downloads/3689-adobe-photoshop-cs2.html ) is good too :) Hope this helps!

the best way by take a photo for the old photographs by good camera in good lighting conditions and edit it in Photoshop ..
don`t scan it with regular scanner .

To digitize old photos, you can either scan with a good quality scanner or to use a digital camera and a tripod and take a photo of the old one and then edit with Adobe Photoshop or other photo editing software.
It's important to take the photo right from above the picture on a natural daylight with no flash.
You can use other software to edit the photo but Adobe Photoshop is the best.

Take the old photo to scan or with DSLR camera in best daylight,the most important is the man that behind the gun and the main role is his experience  to read the photo to digitize in Adobe photo shop software.