I use the Victory Garden cookbook recipe from the 80's. It's the best I've ever had and everyone who eats it thinks so, too--even the "boys" (our two young attorneys in my law office) ask each summer "Has the basil come in yet? Is it too early for Pesto?"
1 tsp salt 2-3 cloves garlic (I use 3 med. to lg. b/c I love garlic) 3 cups packed fresh basil leaves 2 tblsps. fresh parsley 2 tbsps. pine nuts (but I use walnuts because pine nuts have shot through the roof in cost. No difference in taste) 1/2 cup olive oil 1/2 cup grated parmesan
Use mortar and pestle to turn salt and garlic cloves into paste *If you don't have a mortar and pestle, you can do this step first in the processor*. Scrape into bowl of small processor; add basil and chop fine; add parsley and pulse several times. Add walnuts and pulse until desired texture is acheived. Pour olive oil slowly through tube to create emulsion, simultaneously keeping the processor running. Stir in grated cheese by hand.
I actually made this last night for penne and some pan seared chicken breast. Always a hit in our household.