It is extremely important to lift and handle your bunny the correct way to avoid serious injury. Bunnies have a delicate bone structure, but their muscles are strong and if handled improperly, they can actually break their back with the force of their powerful hind legs. Bunnies should never be lifted by the scruff of their neck, and their legs should not be allowed to dangle.  Most bunnies prefer their feet firmly on the floor, so when you do pick them up, it is critical to lift with one hand under their chest and one firmly supporting their rump and hind legs so they can't kick. They should be held close to your body so they feel more secure.

Here are two links to articles on The House Rabbit Society's site that describe how to best pick up and handle a bunny: 

www.rabbit.org/journal/3-11/lift.html

www.rabbit.org/faq/sections/handling.html