At Digicorp, we have recently started code inspection process. It is too early to say that it is producing wonders but it does look promising in the long run.
We are inspired from the Fagan Inspection invented by Michael Fagan at IBM in mid 1970s. We do not follow the process completely but we have done changes according our environment.
Following presentation will give you more idea about the process:
We make it a point to involve newly recruited developers in the inspection process so they get an idea where experienced developers are also going wrong.
This way it becomes part of training for newly recruited developers.
So far we have had half a dozen code reviews and some of them were good, some of them were bad. But all the developers at the end looks satisfied with the result. Developers are not making it an ego issue so far. 
What do you do at your company to do make your code better? Any suggestions to make this process better?