We harvested our Garlic (300+ bulbs) in July 2010--kept it in an open box lined with cloth in the basement, cool consistent temperatures, good air flow.
Then this year when the Garlic (1000+ bulbs) was to be harvested in July 2011, I took the box of last year's garlic, peeled it and ground it up with oil and froze it in flat zip lock bags for use.
This year's garlic has just finished curing/drying. Again, I'll keep it in the basement open to the air and next summer before the next crop is due, I'll clean it and grind it up and freeze it again.
If you have old garlic (from last year), peel it (boil in water for 1 minute to remove skins) then pickle it in vinegar/salt/spices in the refrigerator, or dehydrate it (once chopped, and outside), or clean it and freeze it.
Softneck garlic should last 8-10 months in a cool environment (not the refrigerator) or hardneck garlic will last 4-6 months, again, in a cool environment. That's what I do.
Although I prefer chopped fresh garlic--it's really nice to have some ground up in the food processor and frozen--so it doesn't mess up the breadboard where I chop.
Nobody wants to talk about safety issues, but, it is important to be safe with all your foods, not just garlic. If you want good advice, go to university extension service documents on safe ways to keep garlic, you'll get tested good advice there. In addition to all the smart people on DC that have advice. Best wishes.