My group is pretty much all for Need before Greed, but they have a good way of selecting loot. I'll give this example (it's a little far-fetched example of loot, but it helps you get the picture.)
I the party, there's a Wizard, a Fighter, a Paladin, a Cleric, a Rogue, and a Bard. They just killed a Great Wyrm Blue Dragon and got an assload of loot. Here's a exerpt of the loot page.
Robe of the Archmagi
Staff of Power
Vorpal Bastard Sword +4
Great Sword of Speed +4
Bag of Tricks
Full Plate +4 of Spell Resistance
Cloak of the Bat
+5 Unholy Dagger
The party then casts lots (rolls a d20) to determine the order of who can choose what. In our example, it goes: Fighter, Cleric, Wizard, Paladin, Bard, Rogue.
Fighter: I'm takin' that sweet Bastard Sword!
Cleric: Hmm, the Full Plate looks good, I'll go with that. Torm would agree.
Wizard: The Robe, most deffinately!
Paladin: *miffed that the armor and bastard sword was taken, but since they would be used rather than sold, he gets over it* Great Sword for me.
Bard: The Bat! I know I'm useless, but at least I'll look cool!
Rogue: The dagger.. umm.. ya know, it might come in handy. *glancing at the Bard*
And then they'd pick over. When all of the items are distributed, then they divide the cash. If there wasn't enough items for everyone, those that didn't get anything get more money. In 99% of all of our games, people didn't pick items that would benefit someone else just because it would sell well.
The 1% time that it did, a new guy joined and picked a sword the fighter could have used because he wanted to trade it in. When approached peacefully and asked to make a wiser choice and he didn't, the fighter (and a few other party members) ganked him and took the item.. not really wanting to group with someone without enough common sense to care more about the group than about their own pockets.