Best practices for using symlinks (symbolic links)

Hi there,

I use dropbox on linux with symlinks, but am not sure which is the best/preferred way to use them. Is there a best practice for using this type of configuration?

Currently I use symlinks in my home directory that point to the actual folders in my Dropbox folder, but I have heard of doing the inverse: placing symlinks in the dropbox folder pointing out into the home directory. Are there pros and cons to symlinking from the Dropbox folder to the home directory vs. placing a symlink in the home folder linking to inside the Dropbox folder?

What happens during a catastrophic failure triggering a need for data restoration, which method is preferred? Is there a way to dynamically create links for new entries (like .* folders)? Is there an advantage/disadvantage to using soft vs. hard linking?

Any links/posts with regards to the above would be most appreciated. I acknowledge that Dropbox does not fully support symbolic links, but find them so useful I am committed to using them.

Thanks in advance!