Yesterday I attended an event at the Litquake Festival here in San Francisco and one of the founders of Smashwords was part of a discussion panel about the new world of publishing.
Smashwords is an ebook distributor. Any author can upload their work to Smashwords and they will make that work available to be sold in their online store, as well as the online stores of Apple, Barnes & Noble and other online ebook retailers.
Here is a link to the free ebooks available at Smashwords. Awesome, ‘ey?