Man, you guys busting your nuts over this should hear about some of the truly nasty tactics the records companies use.
Take "Memo Signing" - A friend of mine was memo signed for 4 years (bad management advice got him to sign on the dotted...) - It took until about 18 months after the 'memo' expired before he found out that the only reason they'd 'signed' him was to stop other labels from signing him proper, they had no interest in his work, but were aware of another label that was ready to pounce on him. (Memo signing is a kind of "We'll kinda sign you, but commit to nothing).
Still, they do know how to throw a party, so they're not complete wastes of space ;P