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Project Gutenberg does a wonderful job of making the literature of the ages available to people around the world.
But it isn't the best spot for discovering new writers.
I find web sites like Smashwords and Baen Books are great for this. Many free ebooks from new authors to try and they have more books I can buy if I like them.
Kindle also offers some free ebooks if you check out the Deals thread here.
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