I just wrote my first book (not published yet, but hopefully will be) and learned that you really should not just start writing blindly.
The first thing I do is get the basic story in my head, then turn it into a plot outline. You may remember the plot outline from English class, but if you don't: [link]
After that, I start listing chapters and what happens in each. Usually there are one major event that happens in the chapter, and maybe two or three small events to fill space.
After that, when it's a good day (aka when I don't have a headache) I start writing. My niece also gave me a good tip: Keep two notebooks. One for writing the story in chronological order, and another to write scenes when they come to you.
1. I am getting old and I cannot read your tiny tiny type PLEASE STAHP.
2. The process is different for every author. I sometimes come up with a title before I write, only so that I can have a decent filename, but my agent/editor/whoever usually will make me change it. So don't get too attached to your titles! I usually do some basic planning before I start writing, and I think the biggest thing for me is character motivation. What does my character want, what's in her way, and how will she overcome it? Once I have that down, I can figure out stuff like setting, secondary characters, etc.
I only write short-storys, but I hope that counts too ^^
I normaly start with a rough idea for the setting and the plot. After that I start researching, for the story. While doing that you normaly get first ideas of your characters. For me the titel comes quite late, sometimes the story gets a title when I'm already nearly finished writing
Technically, I start with the characters; in that I keep a lot of character designs about when I don't have a story for them.
Really, though, I tend to think of a situation or set-up and then throw a couple of characters into that. After that, I plan out details like all the characters in the story and its setting, making sure it's detailed so I won't make any mistakes. From there I plan the main points of the story and its pacing (in my head if it's short, on paper if it's too long to remember) and write a first draft.
After the first draft I read through and make notes on what I feel could be changed or is wrong and then focus on that for my second. I repeat that process until I feel I've done as much as I can before going through I final time to make completely sure there are no wrong words or typos. After I've done that, I keep reading aloud to really make sure there are no errors before I can submit it for whatever is needed.
I think each author has his or her personal working method. Ever read an interview or autobiography? Stephen King's Dark Tower series started with the first sentence and was on hiatus for many years after the first sentence, then again after the first book ...