Over at Ask the Headhunter, there is a piece about recruiting scams. I'm not sure how one would have a scam in our industry, but I'm sure it happens. Most likely it's a way someone is looking for short term, cheap help and hoping to get one of you to stick around long enough to get something done before you realize this isn't a good job.
A couple thoughts.
First, never pay money for recruiters or interviews. There isn't a reason for you to do this, even if this is travel to another city (outside of driving). The company should interview you on the phone/Skype and decide they want to foot the bill.
The company should also be paying recruiters for successful placement, so you shouldn't pay them. That being said, beware of recruiters that just want to place you and aren't concerned about a good fit. Make sure you are trying to find a better job that it's really a better job.
Second, the advice given about researching the opportunity (people, company) is good, but you should always do this. Tackle an interview opportunity as a short book report. Build as much of a profile on the company, hiring people, managers, and position as you can. Learn this and be able to talk lightly about what they do, even reference things.
Companies like people that show initiative, and learning something about them shows that. Don't stop before the interview. If you get hired, learn about the company and continue to be engaged. They'll appreciate it and you will enjoy your job more.
