An interesting interpretation I have heard which is in fact quite common is the framework interpretation. In a nutshell the framework interpretation says the Genesis 1 is a literary device describing different events which took place in a nonsequential way. A major part of the interpretation is a correlation between days 1-3 and days 4-6. For example day one the creation of dark, light and space corresponds with the creation of the stars on day four, the creation of the see and the atmosphere on day two corresponds with the creation of sea creatures and birds (along with other flying things) on day 5. The beauty of this interpretation is that since it does not describe the events in sequence or tells anything about the real time frame of the creation it frees the scientist from biblical constraints to theorize the past without having to correlate scientific data and chronology with a preconceived timescale or process and fearing that data may contradict it. It is further explained here in greater depth. It is defended from theological criticism here as well.
It would be interesting to get some input on this from young earth creationists as well as atheists, lets see if they respond.