Whatever you do, make sure you read the contract very carefully, since alarm contracts are known to have some whopper restrictions. Let's say you sign a 3-year deal (common). You probably can't get out of it early even if you move, and will be expected to pay for the rest of the contract duration. Also, it may automatically renew unless you cancel in writing 60 days prior to contract expiration (this works to their benefit since many people don't remember exactly when a 3-year contract ends). I read one story where the alarm company contract said you had to cancel within 24 hours of the end date in order to avoid an automatic renewal.
Sometimes the salesperson will tell you to change something you don't like about the contract by writing in something else. Be careful - the contract probably says nothing can be changed without written authorization from some executive, and your handwritten change becomes meaningless.
Here's what I'd want to know:
Who owns the equipment? (Do I own it, or does it belong to the alarm company?)
How do you determine what types and quantities of sensors are needed to properly secure my home?
Who's responsible for any repairs during the contract?
Who do I contact for service?
Exactly what will the monitoring company do in the event of an alarm? Is there a specified maximum duration that the alarm company will respond?
If my municipality charges a fee for false alarms, and my system generates a false alarm due to faulty equipment, am I responsible for paying?
Does the contract specify how quickly any operational problems will be addressed?
Can my contract be sold to another company? If that happens, can I cancel my contract?
If/when you do cancel, make sure you have proof, so they don't say they never got it.
I'm interested to see the recommendations! 
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