I have had mixed luck with traps that go in/above the tunnels, although even mis-fires seem to scare the moles out of the area, so they partially work. The rat trap / peanut butter / bucket trick is intriguing, and maybe I will try that next as long as I can keep the buckets weighted down good (raccoons love peanut butter and I'd had to have one running around with a rat trap stuck to the arm, all angry.....).
My best results have come from physically spotting and catching the moles. If I'm in a good mood and the conditions are right, I can dig them out or flush them out with a hose, and then put in a bucket to relocate. I generally get a six-pack and wait them out while relaxing after a day of yard work. Otherwise, if I don't have the time but spot one, a good stomp with the heel of my work boot usually does the trick.
Once a landscaper showed me a trick, where you put a shovel across a tunnel at a 45-degree angle, and the moles will come along and dig their way out of the ground right up along the shovel.
In the old days they had traps that fired a 12 gauge shell down into the ground when tripped. The benefit with those is that you always knew when you got one (usually in the middle of the night).
At our new place in the country, there are mole tunnels everywhere in the woods and around the building site. It was all undisturbed forest before we cleared it. I think I am going to have to learn to live with them out there, but I also won't care so much about having a fine lawn.