Fred over at http://avc.com will be talking about HR over the next few weeks on Mondays.
In 2003 I did an interview with Business Week about the subject, which you can read here.
Since then, my hiring has been hit or miss. At Mission Research I tolerated mediocre performance by really nice people I liked much longer than I should have.
Nine years after the article, I'm looking forward to my next hires because I'm adapting a better hiring process and employment principles (work in progress).
People will likely be your biggest expense, and greatest asset. The best thing you can do as a startup leader is to become a curator of talent, and ongoing cultivator.
Have a great day :)