Laurence said:I think the best questions are those that start along the lines of, "tell me about a particularly challenging problem you solved...". If the prospect has any hope at all, there is something he/she is proud of and can't wait for an opportunity to tell you. And once they get animated about something they are into, they usually lose that case of the nerves. I usually try to make a joke of any kind towards the beginning of an interview, as well.
When I first started doing interviews, I tried to copy what I had seen in previous interviews (those useless technical questions that don't necessarily show if you would be useful on a team, just that you might know certain facts).
I ended up doing exactly what you're saying. I now ask questions about "What was your most challenging projects that you can think of", and "What was your most creative projects you can think of", and "What project did you excel the most at?", and "What type of projects do you really enjoy?"
By the time we finish those questions, I have a pretty good idea of what type of person they are. I should know if they're lying about the technical skills simply from asking questions. I'll know a lot about their personality, which is extremely important.
I remember interviewing awhile ago for a "team lead" type of position. Running projects, gathering timelines, etc. Some technical lead must have run the interview. It was just full of linked list questions, memory allocation questions, etc etc. I knew some of the answers, but plenty of them weren't something I would pull off the top of my head. Halfway through the interview I'd given up, but slogged through the rest just in the event that his opinion wouldn't count It worked out best in the end, I found out his group was outsourced not too long later