An author friend of mine, Kara Dalkey, has published a short story on the Amazon Kindle. It's called Ghost Sword, and I created the cover art for it:
Kara has priced the story at .99 cents. It will be interesting to track her progress with this and see how it turns out. She'd heard feedback from others, both positive and negative, on short story e-book sales. I'll follow up with her in a few months and see how it went. (By the way, it's an excellent story, and if you have a Kindle I would certainly recommend it).