Sorry for my delay in responding, I forgot I had posted here to be honest.
To clarify:
The Severed Press is
not POD. They do turnaround anthologies relatively quickly for industry standards, but they publish their anthologies in niche genres that have been selling quite well and getting very good reviews - see Dead Bait as an example.
The Severed Press does not pay author advances, which is typical for small publishing houses. I won't disclose my exact royalty rate, but I will say that it is higher than normal for paperback standards (which range on average between 2 and 6 percent).
The Severed Press is distributed through 30,000 retailers or so, using Barnes & Noble and Amazon, as well as Ingram (sp?) Books as their major distributor, being a high-grade bookseller.
They do promotion and marketing for novels locally in Australia, but for those of us living outside of it, it's in our best interest to do marketing ourselves. Any of you who turn your noses up at this, choose another occupation. I've already been on the front page of a newspaper distributed to 350,000 residents and had a televised interview with nothing more than persistant emails and phonecalls to put behind it. Marketing is great through Penguin Books and S&S, but Severed Press aren't a large-scale powerhouse, let's face it. They're seeking to find their niche in the horror genre publishing world, and doing a fine job of it so far.
Tim Curran, their main high-profile horror writer, has been published through Cemetary Dance - the same guys who have done Stephen King's stuff - yet still releases books through the Severed Press as well.
I'll put it this way - the Severed Press is a small-scale operation in comparison to big-time New York publishing houses, yes. BUT, you need to start somewhere, and getting in on the ground-floor of an operation is always a benefit to those involved when they have the chance.
Besides, Horror is a tough market to break into - I know a lot of people who submit just to see their names in print.
I believe their deal for antho's is pretty standard cents per word, but I'm not sure - along with contributor's copies.
Hope this helps, feel free to PM me with any question you may have about them, because god only knows I'll forget to check this thread for another couple of weeks.
EDIT: Thought I'd answer a few specifics I missed on first pass:
Did they just take US/Canadian rights on your book or did they take worldwide rights? Did they take ebook rights or just print rights?
Worldwide rights, as well as electronic media, although I currently don't have any plans for an ebook release yet.
The FAQs state that publishing rights are only taken "for a specific length of time, which can be extended". Are you able to give additional details on how long this initial period is and how it is extended (e.g. the FAQs say that extension is by mutual agreement of the parties but I was wondering if there is deemed extension if one party fails to notify that it does not want to extend)?
My publication rights were taken for 5 years, with one year renewals after that if both parties mutually agree before 30 days of the expiry, otherwise deemed kaputz.
Hope this helps - like I said, real bang-up operation. Wishing you all the best!