This is a question directed mainly towards Ms. Hanako, but of course anyone feel free to chime in.
Can you reveal any insight on the contract structure used to hire artists for video game art?
Do you pay up front or do you set up some sort of revenue sharing mechanism so they are compensated based on how well the game ends up selling? Maybe pay a set dollar amount per hour of work or maybe per image? How about per pixel (haha)?
Is there any common practice for this sort of thing?
Any tips on choosing an artist? Also, have you ever been pleasantly surprised by what an artist came up with?
I realize a lot of this may not be something you can openly discuss, but I thought I would give it a try.
Let this thread be a place where anyone can discuss experiences about hiring artists. Maybe there are some artists around who can give some insight?
Thanks a lot for anything you can provide.

edit: another legal question: how do you handle the IP rights of the images you get from the artist. I would think that by default an artist retains copyright on anything they create, so do you put something in the contract that says the game company has rights to the image?
edit2:
I've actually found some good info here:
http://forums.indiegamer.com/showthread.php?t=14127