Coffee grinder is best, the finer it is ground the more surface area there is, which will aid in the extraction. Get it as powdered as possible, wont hurt it at all just use it right away.
SWIM has done lots of experimenting with pods, goo, ice-o-lateing, fogles ladrum etc... he says nothing beats a good batch of tea or eating the whole pod(milkshakes are good or hippes yogart tek ummmm)
I do have to say fogles tek does make a nice specialty liqure for special ocasions though.
here is fogles ladrum tek if anyone was wondering what it was, sorry if i am not supose to link like this.
http://adh.2.forumer.com/index.php?showtopic=305