Jerry Perkins (masterxeon1001) demystifies part of the Blender modifier system in a free Blender Cookie tutorial.
Order is Everything!
From top to bottom, the stack will be performed in order of the sequence. Modifiers also make life easier as you as you go about creating meshes.
The first example is the skin modifier. The skin has proved to be irreplaceable to be however there are some caveats to the initial tool behavior that can be improved through modifier stack ordering.
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Link just goes to a free trial signup page, not to an actual tutorial