I came across this site today, did some googling, and see that they are advertising all over the place for writers.
According to their website (www.newfiction.com), New Fiction is "is a free publishing service that offers a variety of books, stories and novels on the web. They claim they provide "a distribution platform that enables unpublished authors and writers to make their stories available via the Internet, cell phone networks, IPODs and other electronic devices in order to develop a large audience."
In other words, yet another display site with a thin veneer of "look! free fiction!"
Oddly enough (or maybe not), they give no concrete information for authors on the site itself. To submit, you need to sign a waiver form, but again, the waiver form tells you nothing about what rights they want or anything else.
How long before they put up a price list, I wonder.
(ETA: And here is a very revealing discussion about New Fiction, complete with passionate posts from those associated with the business.)