Shot with Nikon D40X.

Reno Balloon Race 2008, originally uploaded by nfarmer.
Add the following to your checklist before you go photographing hot air balloons:
- Get there early: Balloon races are not all-day events.
- Know your camera controls: When there are hundreds of colorful balloons floating around, you won't have time to learn your camera's controls. More so during the dawn 'glow' show when it is hard (if not impossible) to see.
- Have a flashlight handy. (see above)
- Be alert/quick: Although hot air balloons aren't moving swiftly, they are moving. Combination of higher shutter speeds, faster lens, higher ISO, etc. will help reduce the blur. Of course, tripod will be helpful...for long exposures.
- Keep moving: Don't be photographing from one place. Move around. Look around. Look above. There's light, angles, perspectives, compostions, etc. to be explored. If you think tripod will reduce your mobility, consider a monopod.
- Manual Focus and Auto Focus: When there isn't enough lightbefore/around dawncamera may not be able to auto focus. Use manual focus. When there is adequate light, switch to auto focus as focusing manually will cost you time.
- Beware of dust: If you must change lenses, do so with caution. There are lots of people at the balloon race and there is certainly dust in the air. When possible, make dust-off reference photos to help reduce artifacts of dust in post-processing.
- Avoid/minimize polarizer usage: Dark/blackish-blue skies look ugly. Besides, CPLs cost you a stop or two of exposure.
- Enjoy: There is plenty of color!
Needless to say but doesn't hurt: If you have a spare memory card and battery, why leave them at home? Take them with you.