Letter of Recommendation

I'm applying for school and scholarships and I find myself in need of short essays and letters of recommendation. Essays are no problem, and I can discipline myself to be short. But letters of recommendation? Those I don't really get. Of course I'm going to seek after people who think I am beyond wonderful. As will everyone else applying. My personal favourites are when the recommender asks for me to write my own letter and they sign it. I can make myself sound even more wonderful than they could. I know myself rather well, and I can easily leave out all of my faults. (I am also my worst critic, and could just as easily inform them of my flaws, if requested.) So what is the point if everyone sends in wonderful letters of recommendation? Shouldn't they ask for specifics, like a letter describing how you utilize your strengths, and another specifying your weaknesses so they know exactly what they are getting? Also I'm torn as to whom to ask. Would it look better if I had a person from a distinguished profession write about me? Should they have known me my whole life and thus formed a long-standing impression of me? Or would it be better if they have barely known me but already discovered my wonderfulness? I seriously think my parents could write a very well-written, overly-observant and equally positive and negative strength-sharing letter. Not to mention my husband and children. Do I call up someone out of the blue from one of my past lives and beg for a letter? What do you recommend?