The latest issue of the free online journal, New Fairy Tales, was released at the end of May. It has some beautiful illustrations and new fairy tales written current authors. It is a visually lovely piece and a work of love by the editors and contributors.
You can see a Flash version or a PDF version on its official website at NewFairyTales.co.uk. They don't ask for contributions for themselves, but if you enjoy the work, there are links to contribute to charitable organizations as a thank you. I am embedding the Flash version here, but I know iPad users don't have Flash supported, so do follow the links to the PDF version if necessary.