Should we take the offer?

In July this year my hubby was unexpectedly laid of from his telecom job of 8 years. We moved to Colorado in 1999 then relocated to Atlanta in 2003 then relocated back Colorado in 2005 and wham he was laid of this July 2007. After about 3.5 months of looking for a job he was received 1 solid offer in Chicago (for more money) and 1 probable offer in Sacramento for less money. The same company that laid him off interviewed him and offered him a contractor position for less money and no health and dental benefits. We are a family of 3, we have a nine year old daughter. Is this too much bouncing around for our daughter...what offer should we take? Chicago, Sacramento or stay and hope that he can go from contractor to permanent with an increase of pay? What would you do? What sounds logical?