Of course, there are many ways to skin this cat.
Being one of the interviewers who ask this question quite a bit, here's a recipe of what I usually look for:
1. Focus on what interests the interviewer.
Match your qualifications to what the interviewer is looking for. They want to know that you can do the job, that you fit into the team, what you have accomplished in your prior positions/in school, and how you can help the organization.
2. Highlight your most important accomplishments.
It doesn't hurt to tell them a memorable story about your attributes (e.g. brief story that illustrates how you tenaciously achieved your goals).
3. Be brief and succinct, seriously.
Highlight 2-3 things that are interesting and useful, not your life-story. Try to keep the answer to 1-2 minutes.
4. Did I mention that the interviewer doesn't usually want to know your life-story?
"Well, I was born in Lost Springs, Wyoming, and when I was three we moved …" Focused, concise, succinct.
Just try to be yourself and natural; good luck!