Venture Deals was a fantastic read but was primary focused on the viewpoint of an entrepreneur getting his first investment without getting ripped off. This article, in 20 pages summarizes amazingly well what stock options are for startup employees and everything else around it.

http://www.scribd.com/doc/55945011/An-Introduction-to-Stock-Options-for-the-Tech-Entrepreneur-or-Startup-Employee
Edit: The above link should be the most recent (3rd Edition) but the latest is always kept on David Weekly’s site: http://blog.dweek.ly/introduction-to-stock-options-startup-founder-entrepreneur-employee/