I usually prefer being inside the characters head although sometimes this can make it difficult to write and you need to develop a pretty solid character.
It really depends. I think for really complicated stories 1st-person just isn't a good choice. But there are some stories where I believe first person is great. It leaves a lot of question marks till the end, and you get to know the character better over a shorter amount of time.
Personally I like using a narrator who is not just a normal narrator (Simon went to the beach) but more of a human-narrator (then, of course, he went to the beach). This is from a really great series called Simon Bloom. Theres a movie coming out this year . Anyways...
It depends on the story in question. I admit, that I would rather read first person because I feel like I can connect with the character more, but third person sometimes must be used!
Spoiler
It's a tiny little mystery, that makes no sense to me...
I think first person is usually better, because it allows you to add a personal feel, and use more emotion. But I use a lot of mystery in my stories, so I have fun trying to write on a personal level while still allowing the main character to preserve secrets until the appropriate big bang moment.... (Jennifer Nielsen was really good at that in The False Prince.)
Oh! I thought this was in terms of what you like to read, so I voted 'depends on the story'.
Well, for writing, I find that it's easier to write in first person, for I find thag stepping in the character's shoes allows for a more... personal connection and possibly more interesting story that way.
If you can't get out of your comfort zone, you'll never find what you're looking for. Don't make things quick and easy to feel better short term. Make a change and then you'll feel better longer term. — Frinderman