Here is how I usually a ground an average pedal (no battery snap, just DC adapter). Two wires from the DC adapter jack ground - one goes to the board ground, one goes to either of the in/out jacks ground. Then I take the ground lug of the jack I didn't use and run that to the middle of the foot switch for the LED ground when switched.

Does this seem pretty "ok" I know it's recommended not to connect the two ground lugs of each in/out jack so I try not to do that but on some of my heavily used pedals I do it incase the jack that isn't directly connected to the DC adapter ground comes loose, and then technically that one isn't grounded at all.  Any other recommendations or should I be alright with this ground setup?

Hi

QuoteI know it's recommended not to connect the two ground lugs of each in/out jack

Why isn't it recommended?  Many (most?) people ground the two jacks via the enclosure.

I star-ground everything (both jacks included) to the DC(-) input on the DC socket.
cheers
Brett

I'm not sure, I know it is recommended to ground both jacks via the enclosure but I remember reading on here that is NOT recommended to ground both jacks via a CABLE connecting ground of IN to ground of OUT.

Either isolate the jacks from the enclosure and only THEN connect the jack ground-rigs, or leave the job on the enclosure and skip the jack to jack wire - double-grounding is what you don't want/need. Some people do so though. I saw it in one of the Sreddy's pedals, double-grounding does not always mean a ground-loop, but you have to have a good reason for doing so and test it. The reason usually is that if one of the jack-sockets gets loose the grounding may be broken. It never ever happened to me. Just use lock-washers.

More on grounding here: http://www.diystompboxes.com/smfforum/index.php?topic=71555.msg578920#msg578920