I used to steal them from a store, but I've got money now. So, in a store still. I like to have the manual and box so I'd never download a game, except for maybe an expansion pack.
Mostly buying them from a store. Though recently bought Garry's Mod via Steam. Though I still would not wanna use my Debit Card to purchase things online.
In a store if it's a 'big' game, because I ike to have a box, a dvd, and goodies.
Download if it's a cheap independent game (Defcon, Now boarding, Crimsonland...)
In a second hand store or the internet for the cheap/older games.
Usually wherever they are cheapest, which is usually the digital download, but not always if you watch for sales. I'm leaning away from digital downloads, since as someone who upgrades their computer regularly in bits and pieces, DRM makes re-registering games all the time annoying. I think with SPORE, I'll go for the physical copy or at least ordering direct from the EA site.
I don't buy my games, usually. It's cheaper to just borrow them from friends and never return them. Of course, I have a fairly high turnover rate for friends, but I have a lot of good games.
As for games that I do actually buy, most come from stores, generally a privately-owned local shop.
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