By hand is the second best way if you want to too turn yellow and smell like an armpit (the best way is using the top loaded machines in brazil). Wash it hot from the start and if it shirks alot you can sell it and buy a GI of the right size.
Looks like every one's covered this. Cold wash, hang dry and http://locker-room.fightgear.net/kimonokare.htm is a great source of info. You guys kick ass. www.SSFgear.com
Fabric softner? Anyways I washed my atama cold, and it shrunk just the slightest bit, I hope it dont shrink no mroe!
It wont turn your GI to ashes instantly. I have also used it and my GI is ok. I could still be bad for it.