I use newsprint for a lot of projects around the house. We get two sets of advertisements and local news once a week and it adds up to a lot of paper. Over the summer I use this paper to start fires but here are three things I do with it in the other seasons.
1.) Shred: I save my flyers for about a month and then spend an hour shredding them (by hand). I keep my shreds in a tupper bin until the summer time when I make them into paper bricks for the fire. I got my paper brick maker from Lehmans (www.lehmans.com) This is an easy and free way to have heat and cooking material.
2.) Spread: Once spring comes and I re-dig my garden beds, I spread newsprint on the bottom. This keeps the weeds to a minimum by suffocating them. By the time the papers disintegrate, the weeds have been killed. I usually do a layer about 3 sheets of newsprint thick.
3.) Seed: I use newsprint to make little pots for starting my seeds. There are little gadgets you can get to help you do this (check here). They stand up fairly easy in my mini greenhouse and the roots have no trouble pushing their way through the wet paper. You can take the whole pot and put it in the ground as is.