I worked at a small web shop with great people, ideal customers, a stocked fridge, an adequately powered computer and the right software, and a team that couldn't be beat. We loved working with each other, and we loved the place. Only problem was, the head of the place was a tremendous ass (and a bit of a crook). Threats, bullying, unreasonable firings, you name it. It didn't take too long before all our great team began dissolving, and the place eventually went under, culminating in his massive heart attack from stress.

We used to have people come on board who'd say "oh, all places are crazy, it can't be any worse than where I came from," and then they'd go right back where they came from.

What any potential employee could have learned from that place was to listen to your future coworkers if you're able to talk to them. If you get a decent sample, you'll probably have a pretty accurate picture of a place.