A programmer was working with a headhunter who misrepresented him to some potential clients. He asked the Slashdot crowd if and how he should fire the guy. The best response:
In my experience, headhunters are very forthright about their desire to kill people, eat them, and hang their shrunken, stuffed heads from strings around their neck. Obviously, you should fire them if they look overly hungry and there is no one else for them to eat. Or if they catch and eat people other than those you hired them to catch and eat. Employed with care and attention, though, headhunters can bring something to your business that no other employee can: abject terror in those that oppose you.
Just had the pleasure of a recruiter telling me I was not qualified for a position that I clearly was. Asked around and found someone else that had been treated the same way for the same position!
You have to realize the recruiter is working for the hiring company and not you! Hold your cards close to your vest but keep things moving forward. Looking back, I see now that I was too trusting of said recruiter.