I am a "single" founder myself who is still in the early stages of my web publishing platform but this sounds already like what I am (and will be) doing. I am a developer and a designer at heart so maybe, just maybe, I might have a bit easier road than you =P
I don't have founder related questions but I do want to ask you about the MagCloud platform (http://www.magcloud.com/) your are using for publishing your magazine. I never heard about it before (and surprised HP does this but thinking about it it's not the first publishing platform they do: there is also http://www.tabbloid.com/).
1) How did you come up with the pricing? Do you break even? From the site I see that MagCloud charges 20 cents per page and for 90 pages that's $18. If you charge $19.50 your profit is $1.50. Is that enough to build a business upon?
What I do know from working for a niche magazine publisher for over two years is that there isn't revenue to be seen when you take into account printing costs, distribution and returns of issues that were not sold. (Which is why it ceased to exist.)
2) I see that some other publishers place ads within their magazine. Are you doing that or have you considered doing that?
I could see a publisher charging much less for the magazine if they can offset the printing cost (and salaries, if applicable) and even possibly turn a profit with advertisement alone. However, I can't see this kind of platform raking in as much readers (or circulation in publishing-speak) as regular off the shelf magazines which basically means less advertisement money and harder to get advertisement opportunities.
3) I see they are offering an iPad app which allows you to view complete magazines. It's more akin to a closed-garden PDF reader (which might explain the 1.5 star app rating) but that's besides the point I am getting at... At the moment they only support publishers who wish to publish their magazine for free -- which you don't seem to do since I can't find you in their iPad store. Would you make your magazine available for free provided you can support yourself with advertising only? If so, do you think you alienate any hard copy purchase? At 20$/100 page + shipping (>=$3) it isn't really a steal for most readers and even for the materialistic ones when they know they can get the content for free (provided they have an iPad of course).