Although the legality is somewhat questioned, one way that foreigners have avoided the restrictions on foreign ownership of land and limitations on condominium ownership is to establish Thai companies (where the majority of shareholders - in number and capital - are Thais) to purchase the land or condominium - as being "Thai" means there is no restriction on ownership rules.

One recent development in the tourist areas of Thailand has been the advent of "time share" apartments. While there would appear to be nothing technically illegal with the mechanism being used by time share sellers, a number of complaints have been made about the aggressive marketing techniques and sales tactics. It is, therefore, highly recommended that you consult a reputable Thai lawyer before agreeing to such a transaction.

Added March 2007 by Scott Malone:
The most common practice in buying property in Thailand, other than the 49% of condo's permissable under Thai law, is to form a Thai corporation which is considered to be a Thai entity and therefore can own land and restricted ownership condo's. This is entirely legal, although 49% of this company can be owned by a foreigner and 51% by Thai entities (a total of 7 shareholders is a minimum requirement), the foreigner can issue different grades of shares and his 49% can be preferential shares with a voting right of 5:1 ordinary shares. This enables the foreigner to control the affairs of this company and thus his property. In addition, either a loan or a requirement of the articles of association can deal with any shareholders that are not entitled to any remuneration for the sale of the property or shares of the company.
It may sound complicated to the uninitiated but is run of the mill for agents, developers or lawyers here in Thailand! For further information please look at my website www.homehuntersasia.com

Added March 2007 by Tom:
You should also mention that a non Thai can lease land on a renewable 30 year lease up to 90 years, and is also able to sell it outright, and also sell it for the remainder of the lease time.

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