When I first started writing and looking to be published the old fashioned way, there were a lot of editorial scams out there. When the fourth agent referred me to the same editor, I started looking into this guy. Turns out it was a scam. The guy charged up to $5K to edit a book and the agent got a kickback. Some of the authors who used this "editor" found that the book hadn't even been proofed.
I happened to know someone who worked as a proofreader and I paid her $1 a page. Even though she only found a few errors, I felt it was money well spent.
I wouldn't dream of doing the final proofing/edit myself. As many errors as I find, someone else will find more and I don't want that someone else to be the reader.
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