The Paumanok Review
I'd like to refer you to an online publication, called The Paumanok Review. It comes out quarterly (Winter, Spring, Summer, Fall), and contains short (and shorter) stories, poetry, and essays. I came across it looking at a web design awards site, which means that the site design is really good. I don't yet have personal experience with the quality of the literature, but apparently some contributors have been nominated for quite prestigious prizes, so you might want to check it out. It is entirely free, and you can download a pdf of the book, or buy a paperback copy of the recent editions. The most interesting thing to me, besides the possibility of good literature, is that the site gets redesigned with every issue based on the feel of the submissions that are included in the issue. I think that's pretty awesome. (The Review is run on a submission basis, so you might even consider getting your name in there, you aspiring writers, you!)
In case you're wondering, here's a list of the contributors. You might recognize some of these names (even though I didn't).
Fiction: Nicolette Bethel, Ace Boggess, Zdravka Evtimova, Steven Gillis, Brian Howell, Nathan Leslie, David McGrath, David McLain, Eric Melbye, M. Lynx Qualey, Erich Roby Sysak
Poetry: Bob Bradshaw, Susan Culver, David Koehn, Rochelle Mass, Mario Susko, Emily Lloyd
Essay: Elisha Porat