Agree with office idea!

Don't sign any long-term leases (over 6 months), and keep it month-to-month. If you start to take off, your damn lease will come back to haunt you... this is a burnt-out economy - grind those leasing agents down, get them to throw in free furniture, free rent, renovations, etc. with the promise that you'll expand out in a couple months with a larger space in the same building. When you get office space - you'll likely need insurance, phone setup, internet, etc... so get the landlord or phone company to throw all these things in for free.

REPEAT: no long-term lease, nothing more than 6 months, and better month-to-month. And nothing beats the kitchen table with a few guys around it.