You might try putting your medication in the fridge (although you might want to ask the pharmacist before doing this, just in case it would make it less effective). When things are cold sometimes it deadens the taste of them a little bit.
You could also try sucking on ice cubes to freeze your tongue and dull your sense of taste before taking the pills.
Another tip I've heard of (but never tried myself) is to eat or drink something really strong tasting before you take your medicine -- something like lemon juice or a strong spice -- the idea is that your taste buds will be overwhelmed by the first taste and not register the taste of the medicine as well.
For me, I always hold my breath and close my throat up where it connects to my nose (I don't know if everyone can do this, you just push the back of your tongue against the roof of your mouth, but in any case I find it useful for blocking off smells more than just holding my breath or holding my nostils closed), then I take a mouthful of the water/milk/juice and don't swallow until I tilt my head back and drop the pill into my mouth, so that the liquid provides a barrier between the disgusting tasting pill and my taste buds for the moment before I swallow it.
As for the appetite thing, even a glass of milk or juice is better than taking pills on a totally empty stomach.
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