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2. CGI. I really like Birdcast at http://www.bignosebird.com - it's what I use on my website. You can find more options on my Webmaster Resources page.
3. A service. Many remotely-hosted scripts are available. The most popular is Recommend-It at http://www.recommendit.com (which offers a contest as an incentive and allows you to add recommendation links to email you send out). There is also a free program called Let 'Em Know at http://www.letemknow.com which allows you to run your own contest for participants and probably offers more statistics. Either can be set up in 5 minutes or less.
Services are easier to set up, but have to make a living somehow and may use advertising or big, tacky buttons with their name and/or logo in order to do so.
Don't delay! Set up a Tell-A-Friend system on your website to watch number and quality of your visitors improve without raising a finger.
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