>>Thats kind of what I had in mind. They are looking at getting pieces of the project done one at a time. I am not responsible for delivering an entire program. So I really don't see how I could be bound to anything since I would be working on a day to day basis with them. I thought I would need a contract for this, just because I didn't want them blaming me for any computer problems they might have. After I posted this, I started wondering if I didn't need a contract at all, because without a contract I wouldn't be bound to anything.<<

Based on what you said here, what you are looking to sign is an "Independent Contractor's Agreement" that basically states that "you will perform various services as agreed upon between you and the Client"; that's it.

As far as tax implications, the Agreement should also state that "you are not an employee", you choose where and when to work, etc. This is meant to insure that the IRS sees this arrangement in terms of how you want them to see it (ie. Independent vs Employee). The tax question is often the trickiest, as far as perception (by the IRS) goes.