I agree with princeparas, but at the same time I can understand ryans problem. it's easier said than done,
I suggested my just-passed-out-IT-engrs-friends to join big-brand company instead of some startup even if I'll be with startup side... :/
I think it depends on the driving force of founder, his vision and his ability to show/convince the same vision to his prospective employees.
Usually, startup recruit persons who are already friends with the founder.
(so it'll be very difficult to get people from new-paper ads/classified that you mentioned, ryan

)
grow your network in the field... join My space/ orkut join their communities...look out for programmers make friends...
Pune is a big city... & I hope can reap something out of it w/t spending $ on publishing ads etc...
haahaa check out the new thread I just started ... it's for people like us... and I am sure it's likely gonna be a success...:
webmasters corner
PS: I cant question your decisions : belega toh, apun tere decision pe kaisa objection lega
muze woh sahi lage ya galat... mai kuch bol nahi sakta kaun ki it's your firm and it's your decision ...