Well, my method goes a little something like this
Wash in hot water using microrestore detergent (
Microfiber Detergent) Wash microfiber together, avoiding mixing loads w/ cottons or other fabrics that may shed/lint. The mf will pick this up when washed/dried. From there, I dry in the machine, also on hot. Standard residential dryers cant get hot enough to do any damage to microfiber

Pull em out and fold nicely before putting them in a container to keep any debris off of them.
Another little tip, is that you can actually boil your towels. Try convincing your wife to borrow a large enough pot for this task though, lol. It'll seriously revitalize those suckers almost better than new
Robaz38: I have a few recommendations on towels. These are my favorites:
Elite or Elite II. Only difference is in the banding. Elite has a microfiber banding, Elite II is silk. Towels are also tagless to prevent any scratching when being used. I really think this could be the best towel for the money.
16x16 Elite Microfiber Dual Pile Towel
16x16 Elite Microfiber Towel
Fluffer: Very similar to the elite. Size is slightly different and towel may be just slightly thinner. Again, at the price, great deal.
Fluffer Microfiber Towel
Ultra: Awesome general use microfiber towel. I use these primarily for interior work, however, they're definitely soft enough for exterior. No banding though.
ultra microfiber towel
Then, a couple others that I really like include the Ultra Mega Towel (super fluffy!!) and the mega plush.
16"x16" ULTRA MEGA TOWEL (UMT)
Mega Plush Microfiber Towel