I have gone through this same process recently.
FireBug's NET tab, the page speed plugin and Yahoo YSlow plugins were the way to go.
I had a page load time of about 10 seconds before optimising. I reduced this to about 6 seconds by doing the following:
- Using different domain names (e.g. static.mysite.com, static2.mysite.com, static3.mysite.com) to increase parallel downloads of CSS/images etc.
- Gzip
- Reducing size of all images
I then managed to decrease this further to about 1.5 seconds by changing server hosts.