What's the best place and way to store potatoes so they keep fresh longest?
3 Answers
Best thing to do is to keep them out of the light in an cool dark dry place. I usually put them in a hessian bag to try and keep the moisture away.
Don't store them in the fridge or anywhere that gets direct sunlight.

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1Also don't buy potatoes that were washed. Unwashed potatoes are dirty, but they last longer and there's smaller chance that they will start to rot or get a mold. And you should always wash your potatoes before you use them anyway. – Fczbkk Jul 10 '10 at 09:29
Potatoes should be stored at temperatures between 7 and 9 degrees C (45 to 50 degrees Fahrenheit). The starches in the potato will start to break down into sugars at temperatures below 7 degrees making for a darker, more bitter tasting result after frying or roasting.
Many people say that you shouldn't store potatoes in the fridge. If, like me, you have a compartment in your fridge that goes above 7 degrees, I believe it is reasonable to keep them there despite common misgivings.
Air circulation is important according to one internet source to "remove the products of respiration". A cool, well ventilated cellar would be the ideal place to store them.
The first article I linked to seems to suggest that you can store potatoes at lower temperatures for a few months.

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I recently bought this jar to hold potatoes. It has holes in the bottom to allow a little bit of circulation. So far I am very happy with it.