This is a nice short clip that demonstrates, more or less, how to pick up your rabbit. The principles are correct, but make sure you watch the bit after the one minute mark for an idea of how to hold your rabbit against your body to make him or her feel safe and secure. The cute little bun in the video is pretty docile and calm, and your rabbit may not be anything like him when you try to pick him or her up! I wouldn't try to cradle your rabbit upright or on their backs as in the first bit of the video. The way the technician pulls the rabbit towards her body toward the end is how you should begin - support the rabbit under its chest, and under its hind end, and cradle it against your body in a more natural upright position. The video is quite correct in that rabbits usually prefer to be on solid ground, and so they will sometimes struggle and kick -- and if they kick out strongly enough they can hurt themselves (including breaking their backs).

http://exoticpets.about.com/od/rabbitcare/youtube/rabbithandling.htm