I have a couple comments on the UGC aspects of this site. I honestly don't know how large the 'story' market is, but I've had some experience with UGC sites.

1. You expect a LOT from your users. Writing a story takes a long, long time. It's much less difficult than pressing an up button or making a quick edit. Why will people want to submit stories to the site? Are any of you prolific story writers?

2. Your people are story writers. Where do you find them? This is more of a marketing problem.