Hi Vaibhav,
DILR is one of the most evolving topics of CAT. Gone are the days when they used to ask you how much percentage 13 is of (45*6). Then you were supposed to know your tables and solve the Q. (u never know they may come back with those kind of questions)

From 2005 you would see a discerning trend in CAT that the questions on logic started coming more and more. It caught its peek in 2006 where the Erdos number question was a complete Googgly!!! i can't think of a better word than that.
Even if you remember the Olympic question in CAT 05 i think that was even tougher than the Erdos question. I would say CAT 2005 was a landmark CAT where it started shedding its old image and took on a new garb.
The way to tackle DILR is to become familiar with numbers and logic. For logic you need to start doing some mental exercise. Solve as many puzzles as you can. CAT would not ask you lateral thinking puzzles. But its a good exercise as you need to take puzzle/logic solving as a hobby rather than taking it as a curriculum.
Am i getting to boring and sounding like a professor. but believe me, you can excel in something only when you start enjoying it.
Bhaskar