Dealing with Difficult People

How do you deal with difficult people?

I'm talking about those who have explosive tempers, who insult you - directly or indirectly - and just seem to dislike you and other people for whatever reason.

For me, I try to imagine what they're going through behind closed doors. Health issues, financial issues, family issues. These can all add up and make people wicked. Although I never excuse this behavior (in my mind, I generally dislike people with explosive tempers, and will try to avoid them as best as possible), but I can deal with it in a way that doesn't cause me to be emotionally damaged.