Some background: we're launching a number of built-from-scratch systems on a LAMP stack, that use a number of web APIs. Whoever gets the job will have CLOSE TO carte blanche to build the system however they like, usign whatever frameworks or code base they are comfortable with.
So if you're a PHP coder based in Sydney (Australia), whose keen to run your own projects (which pretty much comes with complete control over how you do that), and want to work in an office in Bondi Junction (above Westfield) that is small and happy, drop us a line: http://www.excitecorporation.com/contact.html
If you want interesting ask for interesting, not safe. Ask for people using python/ruby and then let them use that.
And this may be totally wrong (and I very seriously hope it is, as I see too many of these) - but this again sounds like a case of business/web-design people hoping they can hire hackers to execute on their 'wonderful and unique' idea. These don't work not because there's anything wrong with being a business person or a web-designer (quite the opposite, they're crucial) but because you can't tell how good or bad a certain idea is unless you begin executing on it yourself.
[Edit: looks you've got a fairly interesting idea and an established business. Don't kill it through turning away of enthusiastic/skilled hackers - since you mention APIs, why should you be a one language shop? The beauty of web service is that they're fairly language/technology agnostic]
I think there are some things wrong with it, actually. Probably you can write good code with it, but I don't think it is encouraged, and it is very easy to screw up.
Also making a snap judgment that someone under the pressure of an interview situation is "boring" is probably a mistake. Sounds like there is something else going on. The fact that you call developers "coders" is pretty damning of your attitude, imho.
They want a local resource. In sydney. There's maybe 1 or 2 (if that) legitimate jobs posted on sydney CL on a daily basis. Not everyone lives in SF!
They could have made substantial progress these past 5 months, but instead they have apparently made no progress whatsoever, and they are still wasting time trying to hire one C programmer in a little midwest city where one of the owners lives. I guess five months of wasted time with no progress to speak of is something that does not bother them very much -- but I think it should, because the more time they waste not hiring a programmer and failing to make some real progress, the bigger and stronger their competition grows.
I ran my own outsource programming business here for several years ... and while it is sometimes a challenge to 'train' a skilled programmer from scratch over here, there are so many who already have the requisite skills that I find it amusing that problems like yours actually exist. I mean, what's wrong with hiring an outsource programmer and getting the jobs done? Especially if the programmer you eventually hire is going to be given as much autonomy as you claim?
I just don't see why every person that's contributing to a startup company needs to be part of the 'local startup family', that's all. It seems to me that sometimes it just makes more sense to get the work started and finished -- one way or another -- even of you have to change your approach to make it happen.
Also on another personal note, my startup has one person who lives across the country (the US, so it's a big country ;) ) and I'm not sure how well that will work out. We've yet to even meet up in person for a drink or anything, and we can't hang out together to code, and I can't easily go over there to kick his ass (figuratively speaking) or he mine when necessary.
In comparison, I pair program with my boyfriend occasionally when stuck on something or working on a project euler problem, and we both do our individual work near each other quite often and the interaction can be pretty useful. It's not entirely the same as IRC or videochatting, which I've done on one project where I worked with people halfway across the world. But again, this is my personal preference. I'd like to hang out with the people I work with, because strictly work can get sort of dull.
I think I see your problem.
A good programmer can write PHP; but a programmer who only knows PHP is not good.
I looked at the website and it didn't really grab my attention.
What a lot of people seem to forget when recruiting is that you often have to sell your company and the position just as if you were selling anything else. Companies with well known brands have the advantage of a known culture (most of the time) or simply just brand awareness, which they leverage to get quality applications (or at least more of them). Startups and small to midsize companies don't have that advantage. So, if you want the best talent, you have to sell your company like you would sell your product. Undirected marketing of your company & jobs will usually produce fairly random response.
A very well read book in the HR/Recruiting community is called "Hire With Your Head". I recommend anyone that who needs to hire read it. The best takeaway quote...
"Companies need to move away form a classified ad mentality of listing boring, hard-to-find jobs and, instead, adopt a consumer marketing approach to advertising" ~Lou Adler, Hire With Your Head
You've already settled on PHP, however. So you're longer giving anybody a "CARTE" blanche and it's no longer "built from scratch". False advertising?
If you're looking for "PHP coders", you're in for a disappointment. You should hire great programmers who can also code PHP - and you would have to convince them why your idea is so fascinating/unique that it would be okay to write in a more or less boring language which has a kiddie/toy reputation.
Yahoo did this by not specifically listing PHP in their ads and bringing in strong Java/C/C++ programmers and then teaching them PHP on the job (or at least that's what they used to do for the non-UX centric parts).
You can find great web-developers and designers who are primarily PHP people, but afaik smarter coders tend to shun it.
Otherwise, write a job posting that YOU would be excited about answering, and post it in a few places.
If you want as much control as you've already declared then I am afraid you will struggle to find the guy you want, they are fed up of working for people that make the wrong decisions for them and leave them with the mess to clean up.
Listen careful to all this feedback and maybe you can either change the job so that you genuinely do offer something interesting to the guy you want or temper your ambitions to find the competent PHP you want.
You can't always expect the best programmers to come to you. You need to go out, find them, and give them incentive to work with you.