Authors and publishers are trying new web gimmicks to gain readers:

• Author Shya Scanlon is serializing his new novel, Forecast, across 42 blogs in the coming weeks
• Concord Free Press gives away unique books, on the premise that the readers will donate to charity, then pass the book along
• Journalist and author Chris Anderson is giving away his latest book, Free, in multiple formats on the web. Of course, you can borrow it free here as well

If you're looking for classics and other books that you can read online, take a look at the following sites:

• Google Books offers millions of books and editions, many in full text. Additionally, Google Books has LIFE Magazine for many years. Protip: Use the advanced search to "Full view only"
• Read Print Library has far fewer books (around 8,000), but the interface for finding and reading books is very friendly
• Internet Archive stores Project Gutenberg as well as many other texts. The archive also has video, audio, and web categories