I've been keeping an eye on how authors are using e-publishing and one that showed up recently is novelist, journalist and screenwriter Ray Connolly ("Stardust"). He got a nice plug in the form of a big article in The Guardian about how he's self-publishing his new novel, The Sandman, in ebook form. He is releasing it free five days a week in serial format or you can download the entire book for £4.99 (about $7.70).
The site is a bit clunky, in that you only get the first paragraph or two of every chapter online; if you want to read the rest of the chapter you have to download it (unless I'm missing something). Also, it would have been good to be able to sign up to have each chapter emailed to you daily, which would be relatively easy to do with an autoresponder.
The serialisation is still underway, it will be interesting to find out at the end of the process--if he's willing to reveal the figures--how many people read it online and how many ordered the ebook.
By the way, It's a great site if you are a Beatles fan--Connolly knew them and wrote about them extensively in his music journalism days and the site also lets you download his unproduced screenplay about the life of John Lennon.