If you really want to understand what is going on, I suggest reading this book: http://www.amazon.com/Electronic-Commerce-Ronald-J-Mann/dp/0... and the cases and statutes it references. But this is really unnecessary to get something decent.
I don't recommend hiring a lawyer. They will either go through basically the same process as described above anyway and then charge you a lot for it. If you have a specific issue with your site, you might want to hire a lawyer to help you draft specific provisions that deal with that issue. But seriously, do you have an issue that facebook/craigslist/ebay/microsoft/amazon/etc. don't?
What about those "pay $20 for a legal document" websites?
I'm actually in search of a web hosting agreement so I couldn't use this one. I needed to move pretty fast, so I just forked over $29 to these guys: http://contractedge.com/
If you really want to use legalese, just find a ToS from a website similar to yours and adapt it to your specific needs.
For a bootstrapped start-up, getting a lawyer to write your ToS and Privacy Policy would be wasteful.
epi0Bauqu you've nailed it: who's got "an issue that facebook/craigslist/ebay/microsoft/amazon/etc. don't?"
http://blog.guykawasaki.com/2007/06/482413_for_lega.html
"You could do less legal work and do it cheaper, but if you ever want to raise venture capital much less go public or get acquired for more than scrap value, this is not the place to save a few thousand bucks. If you're negotiating an investment or a liquidity event, you want someone who worked at Brobeck, Baker & McKenzie, and Wilson, Sonsini, Goodrich & Rosati--as opposed to your uncle the divorce lawyer from Penny, Wise, & Pound Foolish or myinstantincorporation4less.com--not only for her expertise but to show opposing counsel that you're not clueless."
Just some more information to think about...