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DavidJust to give my three cents worth (Leon earlier gave his 'one cent worth' so I'm borrowing a penny from him). If you wanted to produce a viable magazine, where money is not a big concer, I recommend you produce an online or via email newsletter. You can produce a nice looking magazine/newsletter with, for example, adobe acrobat that will have text and pictures and can be printed out by the receiver into their own printed magazine. There will be almost no financial liablity (I'm not talking legal e's here, I'm talking printing costs, mailing costs), no hassle with shipping and printing (and beleive me those are not hassles to be dismissed). Your only worry would be getting people to write nice articles.
If you were to produce a magazine in this manner, I would happily help in its production and will acceptable) contribute and article or two. I also have a large readership for my own email newsletter, which would certainly help facilitate distribution.
I undestand that, at first, potential publishers and readers have their heart set on a printed magazine, but think that the above or similar type magazine is the only viable way to go.