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is the software able to be modified, as in put up my own logo and so on?
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The look of the site can be completely changed via the templates, and this goes for both versions, developer and designer. The difference here is that you can change the way the script functions with the developer version and are really only limited to your own skill. Even then you'll find modifications, modules, or other help that will supplement or teach you what you need to know in the forums.
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can we make an advertisement section free?
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You can create categories and assign your packages (free, other types) based on the category. Yes you can make any category have free ads as well as allow them to buy extras like bold highlight etc.
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when a customer designs an ad do they pay before its posted, or do they have to fund an account? i want pay per ad, there are to many headaches in funding accounts, the site i have right now requires a customer to fund his/her account then go and place an ad, it becomes very confusing.
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No, the customer simply creates the ad and then enters their payment info ie check, credit card, paypal etc.
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can icons, or gifs be put up in place of the folder icons on catagories
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Yes, the folder icon is just the default. You can upload individual icons for each category via the administration panel.
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can you tell where you are located city state?
and how long have you been in business?
do you have another contact method besides email?
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I'll leave this for the owners, they are based in North Carolina and I've been a customer since August 2005.
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please understand we have had a horrible experience with another software developer, and we are not reflecting that on you in any way. we are just looking for courtesy and honesty, and the most for our money. thank you for any help.
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I totally understand how you feel, support often times really makes or breaks software. I think if you take some time to look through the forums you will find out what you can expect for support. You will see that in many times multiple answers have been provided within minutes. They also have a ticket system and bug tracker to provide additonal support.
If you haven't already please try the demo:
http://www.68classifieds.com/demo.php
View the live sites (as suggested by another member):
http://www.68classifieds.com/livesites/
If all else fails they offer a money back for 15 days I think, you'll need to verify that with the staff of course.
Ask away if you still have any questions.