Actually, Joel Spolsky has a really good article on this subject that I refer to from time to time:

<a href="http://www.joelonsoftware.com/articles/fog0000000050.html">Joel on Attracting Developers</a>

**EDIT:** I read Joel's book on hiring devs, Smart and Gets Things Done. In the book, he says that this article is an embarassing bubble-era relic and he has learned a lot since then. I don't think the blog post is all bad, but it's true that the book is a lot more sophisticated.