Anyone Freelance or use Freelancers?

I am going to be doing some freelance work for other
designers, and I've never done it before.  I've been asked
what my payment terms are by several potential outsourcers,
and I was surprised by that because I thought I would be
working on *their* terms, not mine--I haven't figured mine
out yet!  I have some questions for those who freelance or
use freelancers.

Firstly, what are the usual payment procedures for an hourly
based project?  Is it normal to take or pay money up-front,
or do you pay or take payment weekly, etc? How do you
develop the initial trust between outsourcer and freelancer?

Do you usually give or request W2 or 1099?

Any advice would be helpful,
Gina

HWG: hwg-business mailing list archives, maintained by Web Professional Association - IWA