Linking to Mr. Scalzi here: http://whatever.scalzi.com/2010/11/13/the-man-in-the-frey-flannel-suit/
Not that I get more hits than he does (I'm not even sure this thing is on) but the more people that hear about this, the better.
In a nutshell: This guy offers you $250 up front and $250 on delivery of a manuscript. You get 30 to 40 percent of anything it makes. BUT! (and this is yo' momma's huge but!) you can't audit his books, and he owns the copyright.
That's right: HE OWNS THE RIGHTS! Meaning he can do anything with this at any time without your permission. And there's no way for you to know if you're getting paid for it or not.
There are no shortcuts out there. Good work sells. Poor work does not. If you're not selling, up your game. There are many many ways to do this, but recognize that they all take time and effort. People like this Frey are not going to help you. They're going to take all of your self-worth and use it as their own. They do this because they have none themselves.