I'm considering contract work... advice?

I'm considering a contract position. I've never done contract work like this before but the idea of working from home has become something of a necessity for me.... so I'm thinking about it.

What advice would y'all give someone just starting down this road (me)? Obviously it's more risky than working for someone else. That's the part that scares me, but given this economy, who's to say that working for someone else has any security attached anyway?

Do I sound like I'm on the fence? Probably becuase I am. I really want to do this but I'm just not sure if it's the proper responsible thing to do.

Anything y'all can tell me about your experience(s) with contract work (particularly how to find another contract as this one is only a six month job) would be very appreciated.

I'm thinking about doing the same thing! I don't know if it depends on what area/stream you are working in do the same rules for disputes apply for contractual work?