How to respond to peer review - a step by step guide to my first response?
Variations are possible, but I have found that the following seems to be a fairly typically form of a response to reviewers:


Begin with a letter to the handling editor and reviewers, in which you thank the reviewers for their useful feedback (even if it wasn't) and say you believe you've addressed all comments.  If you've made any really major changes, a sentence or two here is a good to address them.
Quote the reviews as sent and address each comment inline, either saying how you've done what they wanted or explaining why you haven't.  I always organize by reviewer and address in the order of their comments (rather than the structure of the paper) because the goal is to clearly show that you have addressed all comments.


I recommend adopting a polite and semi-formal style.  You can be a bit more informal than the paper, but I still don't use contractions.  

Do not get argumentative with the reviewers, and do not blow off their criticisms.  Even an apparently crazy criticism should be treated politely, and as a matter of confusion rather than as a personal attack.