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if i am paying you to develop a design for me, i would expect the PSDs, with NO flattening, PERIOD!
if i want to diseminate my product that I purchased then that is my prerogative. i can do anything i want with it, including making galleries, banners, etc, based on layers and styles nabbed from the tour design. i own the likeness rights to my design correct? therefor i can use its likeness in anyway that i see fit.
i never even knew there were designers that didnt give up PSDs, as you on contracted to do the work, therefore the work you do is property of the client. i always assumed everyone knew exactly what OldJeff stated.
If i payed a coder to develop a script or application for me, i would expect full sourcecode as well. Granted i can change that too, but that again is my prerogative as i am the owner of the product.
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