Sublime Text is my favorite text editor of all time. Here's what my user settings file looks like:

{
	"caret_style": "phase",
	"color_scheme": "Packages/Color Scheme - Default/Monokai.tmTheme",
	"ensure_newline_at_eof_on_save": true,
	"fade_fold_buttons": false,
	"flatland_sidebar_tree_small": true,
	"flatland_square_tabs": true,
	"font_face": "Inconsolata",
	"font_size": 12,
	"gutter": true,
	"highlight_line": true,
	"line_padding_bottom": 0,
	"line_padding_top": 0,
	"rulers":
	[
		80,
		120,
		160
	],
	"save_on_focus_lost": true,
	"sentinel": true,
	"tab_size": 4,
	"theme": "Flatland Dark.sublime-theme",
	"translate_tabs_to_spaces": true,
	"trim_trailing_white_space_on_save": true
}

These settings standardize white space, cutting back on merge conflicts. It establishes rulers to help keep code down to 80 columns (yeah it's the year 2013 and we have widescreen monitors blah blah blah but an 80 column limit just looks better. It also makes it easier to view two panels of text at once). I'm more iffy on “save_on_focus_lost”- for most projects I enjoy it, but sometimes it can cause needless recompilation in C++ (this is solved in Macaroni, as it checks to see if the destination file is different before replacing it).

Updated on 2013-11-27: I didn't Sublime could look any prettier, but changed my mind after being introduce to the Flatlands theme by my coworkers. The big change with this theme is that the folder navigation pane gets blue icons. The best part about it is that you can make both the new icons and text smaller, making it easier to navigate large projects.

I also began using the Inconsolata font which looks only a little bit better than the default font on Mac's but is gorgeous on Windows.