I don't remember where I got this code (it's not mine) but after I tweaked it a bit I found it works probably better than a lot of plugins out there so it's the method I prefer to use on most of the themes I build.
Step 1: Grab the contents of this file: https://gist.github.com/3383697 and put them in your theme's functions.php file
Step 2: Customize lines 46-50 to suit your theme's markup
Step 3: open up your theme's header.php file and put this code where you want your breadcrumbs to appear:
<?php basic_breadcrumb(); ?>
That's all... Working breadcrumbs. Enjoy! :slight_smile: