The Joomla! Extensions Directory ™

Love this module, but wanted to add a few clarifying points to the excellent step-by-step guide posted by 'thomasmes' below (Oct 14, 2009 post) for those, like me, who are new to Joomla. This assumes you're creating a new FAQ from scratch, and can be modified for those trying to use existing content:

Step 1: install module, enable and publish to appropriate template position
Step 2: Create an UNCATEGORIZED article containing "{loadposition FAQ}"
Steps 3: in the latest release, after creating a new section and category (probably each named "FAQ") you simply choose the proper sect/category combination from a drop-down list in the module
Step 4: add menu link to the article created in Step 2 (most users will end up adding a menu item to their Main Menu entitled ("FAQ", "About", etc.) Choose "Article" as the menu item type, then select the specific article in the Parameters portion of the form)
Step 5: Add your questions/answers as new articles under the FAQ section/category. The article title will be the "question", while the article text will be the "answer".

Don't worry if you have a long question that turns into an unruly, long article title. In most cases these 'articles' won't be viewed as individual pages, but will appear on a single page {yoursite/menu item alias.html} in collapsed form, to be expanded by your readers' clicks.

However, if you do select "Yes" under the "Show Read More Link" in the module parameters (e.g., you have a long individual FAQ entries), you can adjust the article alias field accordingly to avoid a crazy-long URLs, as each FAQ will need to be read on a separate page. However, with Readmore set to "yes" I found ALL faq entries, even those with no ReadMore's inserted in the article, still appeared with the Readmore link in the FAQ.