I've had some software developed, now the coder is holding me for ransom.
jneal: "It currently authenticates the user on startup using a script on his server."
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Wow, ridiculous. This should definitely be changed before project completion. You need to get more stuff in writing from the sounds of it.
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I don't want to scare you, but from the sounds of this post, I don't see things working out in a positive way.