You need to work the rope trough many times to remove all kinks. Tie it to a post and start working vigorously down the length with both hands like "milking" the line, moving slowly towards the end. You need to do this at least three times, but for best results you should look at how many kinks you have removed from the line at the end. When you can do this along the whole length of the line without getting any snarls at the end you should be OK. At least this is my experience.

Funny that all lines I have bought over mail-order have come neatly coiled. The only way to treat these is first to 'unroll' the coil like you would do if it was on a cable-drum, and then go trough the above procedure. Strange that the guys who sell lines dont catch up and do this as they pull the line off the drum.