I am an employee of an early stage internet startup company that has a
question about equity distribution.  Basically, we are starting a
business that has to do with online social networking.  The company
was founded by a buddy of mine in July of 2005-he came up with the
idea, wrote the business plan, acquired the domain and filed for the
patents.  He did all the work to get this project rolling.  All this
took around $150,000 which he did with his own money.  This July, I
decided to join his company  along with another buddy of mine at the
same time.  Currently we have three employees(the founder along with
us two.   We will be in charge of marketing at this company.   We have
been frantically trying to raise the capital to get this project
started.  Originally, we were dealing with an angel investment group
that gave us a $5 million valuation for our company in June of this
year.  This particular angel investment group bailed on us in July
saying that the financing fell through on their side.  At this point,
we decided to take the financing in our hands and raise the money we
needed to get our prototype done(roughly $900,000) through the sales
of common stock that the founder owned.  The other employee and I each
put in $40,000 of our own money and have been contacting friends,
family and contacts we know to raise the money.  So far, we have
raised about $450,000(at a valuation of $5 million) between the three
of us(roughly $150,000 each) and have some important leads that should
help us get enough money to get the prototype done.

We are trying to figure what a fair equity distribution would be for
us at this point.  Currently, the founder owns 90% of the
company-roughly 9% has been sold to investors.  We are trying to
figure out what we should be given -and what is fair at this point. 
We(the two employees) are both young-24 yrs old-and don't have any
prior experience working at a tech company.   We both worked on wall
street as traders for banks.

Also, how should we be given equity-should it be a certain # of
shares(we currently have 1000 shares outstanding at $500/shares) or
should it be as a percentage of the company in the charter?  What are
the tax implications if we are given equity at this point?  What
happens to our equity as we hire more emplyees down the road-is that
issued directly from the founder or will it affect all of our equity?

Down the road, what kind of dilution should we expect if we have vc's
investing in us?  we expect to look for vc money after our prototype
is complete.  We plan on raising another $1.8m by this winter and
another $5-$10mm by spring of next year.

What i am looking for is an example comparing equity compensation in
other dot.com startups.  Would appreciate your help and pls let me 
know if you need more details.  Thanks.