"Nightmare" is a new ebook magazine that will be edited by John Joseph Adams and published by Creeping Hemlock Press. They are set to launch in October as a monthly zine, with this issue already lined up. Each issue will contain two original stories and two reprints along with articles and artwork. They were supposed to open for submissions today but the link for their online submissions isn't up yet. (At least when I visited)
They're looking for original stories of 1500 to 7500 words in every type of horror you can imagine. Payment is 5cents a word. Reprints are 1cent a word. You can find all the details here.