I highly recommend getting a worm composter. I have two in my office and they make great worm castings (worm crap). It is nature's natural fertilizer.
You buy the bin and the worms. You add non-processed kitchen scraps and shredded paper. The worms break down the contents of the tray. They multiply and in a couple of months the thing really kicks in and processes kitchen scraps quickly.
Once the lower deck tray gets filled you just add a tray ion top. The worms complete their work on the lower deck and move upward searching for food. You just clean out the lower decks, store the worm casting in a plastic container, and the clean decks are available for new processing.
You have to drain excess water (once a month for me) using the drain plug at the bottom of the bin. The water is a great compost tea. No smells, no mess, and the red worms are inside the bins. They shy away from light so they won't go anywhere. Use red worms, not night crawlers. They just leave the bins and end up all over your house. The instructions on a commercial bin explain everything.
Thing I put in the bins:
Shredded junk mail (no plastic)
Residual vegetables (all parts). The smaller the pieces, the better.
Egg shells (stimulates worm reproduction)
Thing I don't put in the bins:
Fruit scraps (works great but the fruit flies take over the house)
Onions (too acidic)
A great article in the NY Times:
Worms Produce Another Kind of Gold for Growers
I highly recommend a worm composting bin to create great low cost organic plant food for your garden!