What is the ettiquette on what to do after receiving a blog "award"

I'm not talking like national recognition, but when someone posts one of those little buttons and comes to your blog to tell you they've given you a blog award.

What are you supposed to do?  I mean, I know the idea is to pick up the button and pass it along and so on.  But I am just wondering how you all handle it?

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Anyone have any thoughts or tips? I really appreciate it but I am not sure I want to have award buttons and "pass it on" posts all over the place? So is there a tasteful way of handling it?
I'd love to hear the answers people might have. It seems I can have a huge lull and then all of a sudden I receive 2 of the same award and 3 different ones, all in one day! I don't want to spend forever picking out 10 new people/bloggers to email these out to and answering every single question! It's very nice to be given the award and that someone was thinking of you, but sometimes it's too much.

They kind of remind me of the "Forwards" everyone sends to their friends. Most of the time I just delete them. Not enough time for them.

I have always tried to respond back to people tho thanking them for the award.
I have received several awards, but I admit I do handle it MUCH differently than the awards dictates. I leave a comment with a big 'old heartfelt "Thank You". Because I do appreciate it, but it's not something I typically integrate into my own content. Just a personal choice. BUT, I also make it a point to visit the site of each person who received the awards if I'm among short list of recipients. :)
I usually create a new post showing the award or button with a link back to the person who gave it to me, and I try to pass them on. It's just a pick-me-up to know someone is thinking about you. If I get the same award from more than one person, I'll include them both in the post but not post it separately. If a few days happen to go by, and I get the same award, I will usually do a quick post that includes a link to my first response (if there were questions or something like that) so I don't have to do a brand new post. Does that make sense? It's definitely good etiquette to acknowledge it on your blog. Otherwise, you risk alienating some readers.
Well here it the challenge. I often will get several a week. Like I could easily do a post a day. And while it is very sweet and means a lot to me, I don't really want to devote my blog to thanking and listing blog awards. I really hope I don't put off people, but I would have to imagine that would get old to read, too.

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