Wow.. I dunno! I mean, I think its best when the author knows the characters extremely well (but of course the reader doesn't get to see everything.. Only what is important to the plot)... A good setting is always nice. I like books where you can clearly imagine where the character is and what it might feel like to be in that character's shoes...
I think I'll need more energy to start my ramble on what makes a good book/story ^^;; I'm too tired today *le sigh*