By 'figure 8's' I'm assuming vahunter means coiling the rope in a 'daisy chain' configuration.
+1 to that. =D>
Daisy chaining is the way to store ALL your lines. When ropes are neatly coiled, they NEVER pay out correctly without getting tangled. But when they are daisy chained, they work perfectly every time. Nothing worse than tossing out the anchor only to have the first 10 feet of rope pay out, then end up with a bird nest that you have to try to untangle.
A lot of my extension cords and welding leads are stored like this, as well, as anyone knows, a welding lead or extension cord is guaranteed to bird-nest when you're trying to roll it out. And if it doesn't bird-nest, it's guaranteed to get caught on something!
I also store para-cord like this. You can carry 50 feet of para cord around the brim of a boonie hat by running it through the loops....with no bulkiness, and it's right there when you need it. Also, the tight weave of the daisy chained para cord makes a great place to stick foliage if you're trying to camo yourself.