You aren't doing anything wrong. As a matter of fact we want to congratulate you for all of the valuable time that you are investing in the selection of a contractor. It is apparent that you recognize the value of contracting with a professional to improve your home. Your "buyer beware" attitude may seem to be exhausting now, but you will reap the fruits of your labor when work commences and you can sit back and enjoy watching your job progress. It is also reassuring to know that you have done your best to select a contractor that not only will do a good job, but will attempt to resolve any problems that may arise in a fair and businesslike fashion. (your contract with him should spell this out in advance.) As you are no doubt aware, selecting a professional contractor can be one of the most difficult tasks one can assume.
The methods you have used to locate contractors are good ones. But, your list is not complete. Many counties have a Builders Exchange that maintains a membership roster by trade. They may even make a few recommendations if you ask. Another outstanding way to find a good contractor is through a national trade organization with a branch in the area. Generally speaking, these organizations maintain stringent criteria for membership in their organization and require their members to adhere to a code of ethics and business standards. In addition to these sources, you also should contact the Contractors State License Board and the Better Business Bureau to ensure that the contractors you are considering are in good standing. Finally, when you have found someone that you are comfortable with, make sure he has all of the proper insurance's required to perform the work, and that his contract is fair and includes everything that you have discussed. Remember, if it's not in writing, chances are that you won't get it. Good luck!