[chrisbennet]

Company: "What salary are you looking for?"

You: "As much as possible. How much have you got?" :-)

In my experience, places will pre-qualify candidates through the recruiter (the recruiter won't send them someone they can't afford) or HR will ask you for a range before you start interviewing (so they don't waste everyone's time).

The last time I was asked by a hiring manager what sort of range I was looking for, it went like this:

Company: "What sort of salary range are you looking for."

Me: "125-135K"

Company" "Our salary for a Senior Dev tops out at 122K"

Me: "That's not my problem." :-)

Company: (Smiling) "You're right."