and can I customize the dashboard the contributor sees?
With Adminimize http://wordpress.org/extend/plugins/adminimize/ you can set a lot of things they can or cannot see. I actually use it for myself to hide things I don't use.
]]>Summary of Roles
Administrator - Somebody who has access to all the administration features
Editor - Somebody who can publish posts, manage posts as well as manage other people's posts, etc.
Author - Somebody who can publish and manage their own posts
Contributor - Somebody who can write and manage their posts but not publish posts
Subscriber - Somebody who can read comments/comment/receive news letters, etc.
The default role for a new user can be set using the Settings General SubPanel.
Do any of those fit your needs or do you need more customization?
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