Thanks all for your comments. They have been a very big help. For now, I've come to the conclusion that the future is unknown, and therefore the risks of either staying or leaving my current job are for the most part equal. That leaves me with personal preference and fair compensation as deciding factors. You can help with the second one. I'll present some real numbers here without giving away too many secrets <g>. Your thoughts are appreciated.

First of all, I would characterize my current salary as average for the area. The recruiter and I talked about the following numbers, but I haven't committed to anything yet. The contract job would result in a net increase of about $10-$15K per year over my current salary before taxes. That would still be about $15-$20 per hour below the lowest rate I would expect as an independent contractor. I admit that I'm green when it comes to these matters, and I want to make sure I'm not selling myself short. Here's what I figure I'm getting instead of the extra money as an independent:

1) They got me the job.
2) They pay me weekly. I don't have to worry about collecting from the client.
3) It's a W2 position, which helps out with taxes.
4) Fewer legal woes. The agency handles the legal contract and accepts liability.

If you see any misconceptions here, please speak up. I realize acceptable compensation is subjective, but I would like to make sure I'm not being taken extreme advantage of. In the end, personal preference may lead me to stay put, but I want to examine all options with my eyes open. Thank you very much for your help in this decision process. I value your opinions.