I know that it will not really help with SE even I heard that Yahoo may get it indexed. But how can you at least increase traffic (real actual visits) from Craiglist?
Has anyone used it to deliver traffic? What is the best way of strategy to do it? I even hear of some marketers that post on many different cities.

Please explain how you use Craiglist to increase traffic... What have worked for you?

I suggest you register to CL's forum and start discussing. The CL's discussion forums are a great place to direct fast cycle traffic to your blog. Start out by picking the appropriate forum to begin talking. Get involved in the conversations so the users of the forum identify you as a regular. Then insert a link to one of your blog posts that is relevant to an ongoing discussion.

Next is put links in multiple forums. You should place links to your blog in as many of the discussion forums as possible. Generally, placing a post in the discussion forum for one city (New York, for example) automatically places that post in all city forums for that topic. So, place posts with links to your blogs in multiple topics to boost traffic to your blog.

I have to agree that the best way to get any sort of traffic from Craig's List is to join its forum. Once you do, treat it like you do any other forum. Try to find niche oriented threads and comment on them. CL is mainly known as an "online garage sale", so a lot of the people I know that use it, concentrate on the forum. Other than that they really do not find much use to it. Personally I have never used it. Who knows, maybe in the future.

I thought you didn't believe that it will help with promoting your own site, now you're agreeing with me? You're confusing me.

But anyway, yeah just like what I said, joining forums in Craigslist is one way to help you get traffic out of that site, by placing your website URL to your signature in the forum and interacting with other members of CL.

I have had a dramatic increase in visits/ clicks from craiglists once i started using images instead of text ads.

I designer a image ad in paint, load it into photobucket, Put an anchot text of that link with my website url in craiglist.

People are more prone to clicking image ads.

I will have to try and build up the forum postings on craigslist -- the forums are very untapped - do they pass pagerank? Also, I know that posting interesting and attractive ads will drive traffic to your site.