Ask Slashdot: Contract Programming

Trak asks "Ever since I got married and had a kid, I have been working full-time salaried jobs. The employeer handles my taxes, provides health-care and a 401K plan, etc. However, I have just been offered the opportunity to work with some great new technologies for more money, but on a contract basis. This means I will have to do the self-employment 1099MISC tax stuff and provide health-coverage for my family. Are there any contract-veterans reading Slashdot that can give me some pointers? Maybe point out some drawbacks I am overlooking?"