By far the best approach IMO!!!
Ok... I just finished packing up two bikes into boxes for Whistler, and I'm pretty proud of my effort.
I've done this a few times before, but this time took a different approach. I'm well stoked with how it turned out.
Step 1: Remove front brake from fork, wrap around bars.
Step 2: Remove stem (with bars, etc attached).
Step 3: Slide out forks, put tape around headset to geep it together.
Step 4: Bubble wrap around frame and bars, so bars are attached to frame.
Step 5: Off with the front wheel.
Step 6: Remove pedals.
Step 7: Apply as much bubble wrap as you like. I don't use so much these days.
Step 8: Bike goes into box upside down, resting on headset and seat. Fork and front wheel will fit in as well.
... better deflate the tires a bit as well ...
Using this approach, a Demo 9 with 888s will fit into a standard box from the bin at your LBS (way smaller than the box you get from Qantas).
It takes about 20 minutes to do, and I reckon a similar amount of time to put it back together. Not much you can mess up.
I'm seriously stoked on this. Since the rear wheel stays on, you don't have to remove the rear mech or chain, and less worries about the messing up the hanger (which is kind of exposed with no wheel or mech).