I use a xikar. I squeeze it just enough so the blades are pressed into the cap, and then I twist the cigar. This has resulted in far fewer caps coming off than I used to get when I would just clamp down.
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Since starting up smoking again I've been without a punch, so I've been using my fingernail to do what a punch would do.

I remember someone posting some photos of this method somewhere a few years ago.

Basically you use one of your fingernails to make an indention/cut in four lines to make a square. If you've done it well enough you should be able to peel away a section of the cap and begin :-)
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I used a Palio exclusively up until about two years ago...still love it, but just don't use it anymore. Bought a Xikar X8 two years ago and have been using it ever since. Great cutter for $ 24.99 (sometimes can be had on the "Monster" for $ 14.99 if you're watching). :-)
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I usually get the cap a little moist before I clamp down on it and I haven't had a problem with cracking or falling off. I use a cheap plastic cutter that I got free with a sampler over the colibri cutter I got from cbid.
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