I am not sure how you can interview without handing out a contract though. My contract states my policies about EVERYTHING and I want parents to know all about vacays, policies, etc and make sure they can follow the guidelines of the daycare. No use them liking me if they can't adhere to the policies I operate under - right?

During the interview, I essentially go through the points of my handbook/contract. Since it covers just about anything I can think of, I find it gets all areas covered. But I don't let them take it home. I just have a copy that I use for interviews, with notes and additional questions in the margins.