What are best practices for a Development Environment

We now want to setup a development environment to test out changes before applying them to our live data. Changes will include things like SP installs, using new Web Parts, developing workflows, etc.

We made a backup of our current database, built a machine in our Lab domain that runs SQL and SP 2010 and restored our database. This all went well. We started going into the SHarePoint site in the Lab and found that all of the permissions for the subsites and lists reference our live domain.

My question is, does there exist some sort of best practices for setting up a copy of a production site in a lab environment for development? How do we handle things like accounts? While an answer would be nice, a pointer to an existing article would be better.

I had considered setting a one way trust up between our lab and our production domain but I really want to see what's recommended in this situation before doing that.

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