I was recently looking for the "right" way to use rand() since I had read about problems with using it incorrectly. The problem has to do with the lower order bits causing more repetition than expected, which ruins the randomness you could have. Uhfgood pointed me to the following article which seems to explain away the myths and gives a good solution to use: http://eternallyconfuzzled.com/articles/rand.html
Well, I decided to test it for myself, and it turns out that the article seems to make claims that didn't pan out in my tests. Then again, maybe my tests weren't very accurate or didn't prove what I thought they did. The source code to my test is available, and I would appreciate it if someone else could verify the results for themselves.