Life should NOT be a trip to the grave with the intention of arriving safely in an cool and well preserved body, but rather to skid in, chocolate in one hand, beer in the other, body wrecked, totally worn out and screaming WOO HOO what a ride!
I highly prefer the DOORS (Telelogic) approach which allows you to display all kind of information of linked/traced object in an additional column (e.g., next to your User Requirements). By writing a bit of DXL (DOORS' programming language) you can even specify that if the trace comes from a test run you want to see (in addition to standard information) the result + anomalies information, etc; whilst if the trace comes from a Software Requirement you want to see priority, or whatever you are interested in.
Have a look (e.g. at page 22) of 'Implementing Testing with DOORS at Dräger Medical' (Presentation from the Telelogic User Group Conference October 2004 in Germany) at: http://www.grahlmann.net/presentations.htm
This will show you how you get your traceability matrices in a nice way, basically for free (and maintained automatically) in DOORS.
A Requirement Traceability matrix can be prepared using MS-Excel Spreadsheet very easily. For Testability purposes following column headings are manadatory:
Business Requirement ID, Explict Functional Requirement IDs related to each business requirement, Implicit requirements realted to individual explicit requirement, testability Status, Test Case ID, Test Objective, Test Group.
Preparation of such matrix will also aid in determining the Teest Coverage.