This just about eclipses Rick De Marinis's "The Art and Craft of the Short Story" as my favourite "How To..." book. Vanessa Gebbie - who writes a mean short story herself - has assembled a bunch of writers with a solid track record of winning prizes in the shorter form. Each of them has written a short essay on a different aspect of short story writing - from character to setting - and ends their contribution with a list of their personal favourite stories, which is a nice touch. Paul Magrs' rather idiosyncratic Dos and Don'ts list is great.
I would award this five stars but for the contribution of Graham Mort, whose slightly pretentious essay stands out as being ridiculously erudite in an otherwise fun-to-read and hugely accessible collection.