I install the protectors, place the bulb with its protector in an extremely thick cardboard box slightly bigger than the bulb istelf, tape the box securely with duct tape, and toss the box containing the bulb down an unused stair case or out the booth window.
(with nobody under or near the window. Make sure the "coast is clear" before you toss them)
Do one bulb at a time, and use a different box each time.
Don't hit the box with a hammer.....the hammer could break the box, and glass fragments will fly out.

Of course I always pick up the box after tossing it down, taking much care to see if any glass shards are poking through so I don't cut my finger in half. I then rattle the box a little and listen to make sure it has exploded. Then I just toss the box in the trash along with memos and stuff like that.
I have tossed a few boxes on the booth floor as Joe does, but it usually scares the crap out of the dog sitting in the chair. Then I could have two messes to clean up instead of one. 
Then take and tape the box so that it doesn't open itself and toss it up and away from you. If there is a loud POP then its broken, if no pop, carefully shake the box listening for shards. If the bulb didn't break after that (I have had a Chinese bulb once that required pitching unboxed against a wall to get it to break
) In most cases the box will take all of the blast with little to no damage (Especially the ORC/PerkinElmer boxes-Osram and Christie boxes usually have some minor damage to them after absorbing an xenon explosion)
Then simply throw the box into the trash.
-Aaron
To make a long story short, I got to see what the inside of my finger looked like and it took 25 stitches before they had me all together again. The moral of the story: Be very careful while disposing of those damn things! They do indeed bite!
I never really liked that idea. One of the riskiest times in a xenon's life must surely be during shipping. OK, the polystyrene wrappers will absorb a certain amount of shock but the way some postmen chuck parcels around I'm convinced that one or two must blow up. By shipping the lamp twice, you're doubling that risk.
I suspect that the real purpose of that sheet was to cover the reseller's ass against any claims arising from someone attempting to dispose of the lamp themselves and causing an injury.
One suggestion for disposing of a xenon, though: If Brad and Joe don't manage to win the best documentary Oscar for 'Booth Training II' and want to have a go at next year's awards, a video of an exploding xenon would make an excellent training resource for chief projectionists to push home the point to trainees that xenon safety has to be taken seriously.
I don't know how you'd video it or induce the explosion, though. The only way I can think of is to replace one lamphouse panel with a pane of very thick perspex, put polarising and UV filters on the camcorder, strike the lamp, retire to a very safe distance, i.e. another room (taking care not to look into the lamp, of course), and then increase the current till it blows. Of course this would take quite some organising and the downside is that this would risk writing off some expensive gear, so I can understand if no-one is exactly enthusiastic about the idea.
1). Are you referring to the "dog" as a real dog or just a lazy projectionist?
2). If it is a real dog, what is it doing in the booth? Sure, Ian may have his cat sleep on the platter decks, but you're better than him, right? I mean, who isn't? Dogs != Clean.
3). If you are referring to a lazy projectionist, wouldn't half the fun be scaring the crap out of him/her? I'd throw the box as close to that projectionist as safely possible just to be amused by the reaction!
Jeff, you didn't happen to get a 3D picture of your sliced finger, did you? That must have been some cut. 25 stitches is A LOT of stitches!
Aaron, your new picture makes you look like a ghost! A happy ghost with beer. Lemme guess... flash camera?
Leo, I had an exploding xenon in Booth Training I. Two, in fact.
Anyone care to donate some fake bulbs?
In the meantime, Jim Ziegler's method is the safest.
Insert a small steel rod. Rap the lot in a dust sheet & hit the rod with a hammer.
I have recently disposed of a lode of 4 kW using this method.
The good thing about this method is
1/ the lamp 99 out of 100 will degas with the first hit. The second hit will usually smash the glass.
2/ The safety jacket around the lamp will contain any explosion & the box & dust sheet will contain any glass dust.
3/ when the lamp has been broken you can seal the hole in the box &
dispose of it safely.
It is a bit long winded but works & is safe.
The most important thing is to be safe. IF IN DOUBT DO NOT DO IT.
By the same token, the National Film and Television Archive show This Film is Dangerous, a 1940s instructional film which includes shots of 2,000 foot reels of nitrate on fire, to all newly hired archivists as part of their induction process. What I had in mind was something similar only with xenon lamps. Obviously this would not be straightforward to produce. Perhaps a lamp manufacturer could be persuaded to support such a video...
The other method that seems common is just to let the used bulbs sit around in the booth forever, thus avoiding the need to dispose of them. 
Is your insurance up to date.
I might place a melon in the lamphouse for added effect, or maybe add a rubber face mask and one of those rubber hands used on Halloween.
Joe may have been joking about the 9,000 hrs, but I have heard rumors that there was one theatre that had an early conversion to xenon and didn't replace the lamp for a fantastic number of hours. I don't know how true it was.
I've heard of wrapping the bulb up in a 50lb popcorn seed bag and smashing it with a happer. That doesn't sound like as much fun as throwing it down the stairs.
------------------
This one time, at Projection Camp, I stuck a xenon bulb....
About the video/film, how could you do it "no cuts" and have near-perfect exposure when the bulb is on and when it is off (before it strikes) and during the explosion (there will only be a quick flash) and afterwards to see the damage it caused? Does slow film have that kind of range?
WARNING:
In accordance with ANSI/IESNA Standard RP-27, this XBO bulb is a Risk Group 3 product.
Read and understand this warning before using this bulb!
XBO lamps are at high internal pressure when cold (up to 35 bar
or approximately 525 psi) and at operating temperature (up to 80
bar or approximately 1200 psi at bulb wall temperatures of 600°C
to 800°C). Therefore, XBO lamps may unexpectedly rupture
resulting in the discharge of hot fragments of quartz and/or glass
and metal . In the event of such a rupture, there is a risk of
personal injury, burns and fire. Only handle lamps with their
protective covers in place. Do not handle lamps without their
protective covers unless government-approved (OSHA-approved
in the U.S.A.) safety glasses, facemask (with neck protector),
chest protector, and gauntlets are worn.
RUPTURE & RADIATION (UV-VISIBLE-IR) HAZARDS:
1. Intense ultraviolet (UV), visible, and infrared (IR) radiation is also generated during operation. This
radiation can cause permanent damage to the eyes (including blindness) and serious injury to the skin
(including burns and blistering). Some operating lamps also generate ozone (O3). Others, designated
“OFR,” are constructed of materials that prevent the generation of ozone. See the “Ozone
Generation” section below.
2. To avoid eye damage, other personal injury and/or property damage, the lamp MUST be operated in
a suitable fixture. A suitable fixture is one that will prevent the arc from being viewed directly while
operating. It is ventilated to the outside for those lamps that produce ozone and, in the event of a
rupture, will prevent hot (up to 800°C), flying fragments of quartz and/or glass or metal from escaping
into the surrounding area.
3. To minimize the risk of a lamp rupture, the lamp must be replaced at or before the end of rated life
(see catalog for rated life) or when the lamp shows signs of advanced blackening or quartz
devitrification (recrystalization, a white, frosted appearance).
4. XBO lamps are constructed of quartz glass, tungsten electrodes and either tungsten support rods or
molybdenum foils. High wattage XBO lamps used for cinema film projection have nickel-plated end
caps (bases). Reflectorized XBO lamps have a dichroic-coated borosilicate glass reflector.
LAMP DISPOSAL:
1. There is a risk that a lamp could rupture because of its high internal pressure (both hot and at room
temperature). A lamp rupture could result in personal injury or property damage from flying
fragments of glass and/or metal. Therefore, spent (end-of-life) lamps should ALWAYS be stored in
the protective covers and packaging in which they originally came, and ultimately de-pressurized
before release for disposal. The following is one example of a de-pressurizing method for XBO
lamps prior to disposal, but it may not be the most suitable or appropriate method depending on the
circumstance:
· The operator must wear government-approved (OSHA-approved in the U.S.A.) safety glasses,
facemask (with neck protector), chest protector, and gauntlets during this entire procedure.
· With protective lamp covers in place, place lamps1 into steel drum2 and lock down cover with
bolt ring and bolt.
· Drop drum onto solid surface (concrete floor) from at least five feet. Increase height as needed
to ensure all lamps are de-pressurized.
· Wait for dust to settle (about 5 minutes) before opening drum. Loosen bolt and allow gas to
escape before complete removal of cover.
1 The lamps should not exceed the half-full point in the drums. Adjust the maximum number of lamps
accordingly.
2 8, 20, or 30-gallon drums, depending on quantity of lamps to be de-pressurized, are available. Drums of 20-
gauge steel are recommended and are available from many safety supply companies.
2. Disposal of spent lamps must be in accordance with applicable federal, state/provincial, and local
regulations. State laws differ in their disposal requirements.
3. U.S. lamp users may obtain information concerning relevant agencies and disposal regulations from
the Federal Superfund Hotline (Resource Conservation & Recovery Act) at 800-424-9346.
Information may be available as to the appropriate state agencies to contact regarding disposal issues.
4. OSRAM SYLVANIA Products Inc. cannot advise lamp users as to general or specific disposal
regulations for federal, state/provincial, and/or local municipalities.
Hey Ken, what the H--- is a happer and where can I get one? 
Joe, film has an incredible range. A. Adams "zone" system was (and probably still is) the best way to exploit this with large format negatives. The concept is to tweak the exposure and developer to match the contrast range you want and place it correctly on the curve.
Check out this for a better explanation of development tweaking.
There could be a no-cuts taking of the film, but using a time code marking the different events so the various sections of the film could be processed differently for perfect exposure range. Adding fill light would eliminate the need for extreme low light imaging.
We expect you to have this project completed under budget within the week. 
TUNGSTEN CATHODES--Reloaders might fit them to high-power cal.23 or .223 cartridges as A.P. projectiles (with increased wear on the
rifle barrel's lands, however) I think tungsten is heavier than lead.
TUNGSTEN ANODES--Use as balance scale weights for use by reloaders,
chemists or darkroom photographers. Or make into chess pieces by
painting or grinding designs to differentiate the ranks.
---Since tungsten is valuable, they might be sold to a metal reclamation company.
XENON BULB ENDCAPS-- Wire with sockets and a dimmer to make a hanging
chandelier for your home theatre. All needed parts available at Home Depot lamp center. Five or seven in a circle on a barrel hoop would
be a minimum-cost approach, but your creative sense can do better.
Or use seven for a menorah, or nine for a hanukia, using candles or
decorative electric bulbs.
Since my last steady job was at a single screen, the bulbs accumulated on the shelf in their plastic safety enclosures within cardboard boxes rather slowly. But when I needed shelf space, I would
don the OSHA protective gear, wrap each bulb in an entire newspaper, put it into a leg cut from a pair of jeans, and hit it with a hammer,
on a concrete floor, resulting in a muted "pop." After removing the
parts to recycle, I would package the glass in the newspapers, pack
them in a corrugated carton marked Caution! Broken Glass! seal it with
duct tape and place it next to the trash barrel for the porter to
dispose of.
Those guys at Osram must be totally trying to cover their asses with that form!!
C'mon guys-its just a xenon bulb, not a nuclear weapon. Superfund disposal site? All thats in a xenon is quartz, tungsten, ceramic and xenon gas. None of which are toxic or unstable.
Additionally, anyone that tries to handle a HOT xenon is just plain STUPID.
-Aaron
Oops, I mean hammer! 
or is it spill chuck
Other links:
http://www.sqpuv.com/high_safety.htm
http://www.cinemaequip.com/tech4.shtml
------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
Tel: +1 585 477 5325 Cell: +1 585 781 4036 Fax: +1 585 722 7243
E-Mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion