It seems that this is a major question among the various members
There is no correct answer but am laying down some basic thumb rules
which may guide you on what is right for you

a) You are very clear of the approach you want to use to convert your
idea into something saleable and you really dont want to do it any
other way
 - VC is not a good idea. You may have to change your approach based
on his thoughts or his ideas because his interest in your idea is
purely financial.

b) You have a great idea which you believe can convert into big money
in a few years (read around 5 years max) and you also want to cash out
- VC is a good idea. When you want to cash out he can use his contacts
to get you a good deal because it is in his interest

c) You have a great idea and you want to run with that idea and that
idea alone.
- VC is a bad idea. While the VC will run with you, if he feels that
the boat is sinking he might want to change tracks

d) You want to be an entrepreneur. period. The thrill of being an
entrepreneur is more important than the idea itself.
- VC is a great idea. He will help you achieve your dreams much faster
than you can ever do it alone. In that process you might chnage three
ideas but all of that will help you fulfil your dream of becoming an
entrepreneur

e) You are afraid of failure. You think that is a social stigma and
therefore would prefer moonlighting rather than go full fledged
because you dont want to risk failure
- VC is a bad idea. They are ruthless people and if they see you
sinking they will shift their preferences elsewhere. They are
interested in making 2 out of their 10 ventures successful so one
venture down the drain is no big deal. So while with VCs changes of
success is higher chances of failure might also be higher.

f) You are interested in running your venture for a long time rather
than selling it out after it is success
- VC is a bad idea. The VC earns money only when you cash out. He is
not in the business of running steady businesses.

g) You dont want to struggle so much. :). While you want to be an
entrepreneur you dont really want too run a garage shop. While you
will live without the luxury of a sedan you do atleast want a maruti
800.
- VC is a good idea. He will typically let you draw a survival salary
from the business. the struggle is much less. Of course the riches are
also much less

h) You have set up a team of three people who are all technical.
-VC is almost a must. If you dont understand business you will most
probably not reach very far

i) You have virtually no savings and your father is not a millionaire
-VC is right for you. While we all love the rags to riches story, and
we all have heard about Bill Gates, for every Bill Gates there are
1000s who nobody has ever heard of. So it is most probably not a great
idea to risk all your money on a venture and then see it crumbling
before your eyes - knowing that you will have to struggle the next
five years to recoup what you have lost.

j) You are very passionate. You want to either be Bill gates or be
nobody. You hate mediocrity. You would rather not do college than
study in any other college than Harvard
- VC is terribly wrong for you. Go out and enjoy your 30 mins of fame.
Win or lose you will most probably enjoy every moment of it

What i am most probably trying to get to is that VC or not VC is most
probably an emotional rather than a financial question.
So rather than the money think of the type of person you are and then
decide.

A simple one line thumb rule which I use is -

If the idea came before the entrepreneur most probably alone is better
If the entrepreneur camebefore the idea most probably with VC is
better