I've used LogoWorks a few times with success. In every case some revision was required...most logos are a committee effort so users want to be able to revise them...it is also nice to get a couple different versions with the understanding that you can choose to have one polished into a final logo.

Some site feedback: the monitor with rotating logos on the homepage is somewhat confusing. It looks like there are buttons but it is just a graphic.

The video is cute but it is a little drawn out.

The site branding is strong but may be too unprofessional for the market of people looking to pay money for a logo. I don't know if focusing it on "web 2.0 logos" or something might help refine and differentiate the site.

Overall it looks cool-- good luck!