Hi guys,
I've just read your arguments for and against contests and free work vs paid work and found it quite interesting.
I agree with what Glaiel and Luis are saying; sometimes you should just be doing things for free to try out new wacky ideas which don't yet merit a full title and, probably more importantly, just to have fun working on something with your peers.
I also agree with Glaiel's thoughts on game contests for the most part. I think it is a shitty deal to perhaps end up with nothing over it, however I think it's a great way for new developers to get on the scene much like I-smel pointed out.
Having said all of this I must say that I-smel is right in that sometimes you need to be paid to work. Making games just for the fun of it is just about the most entertaining thing I know of, but I need to eat food in order to stay alive and continue making games when I can so sometimes work comes first. This strikes me as irrelevant in the context of this "game jam" you're talking about though.
Last thing; what is a game jam? Is it like one of the old "collabs" we did where each dev makes a mini game and we package them into one swf?