This is all rooted in a vision I had, of William S. Burroughs as a CIA agent, and Philip K. Dick as his young henchman, going head-to-head with notorious gangster and pervert Adolf Hitler somewhere in Hamburg to find out where Hitler is shipping all the computers he can get his hands on. - In another world Charles Stross wrote this sprawling work of Alternate History instead of the Merchant Princes books. Fictional books are of course themselves a common them in Alternative History stories, from The Grasshopper Lies Heavy in The Man in the High Castle to Adolf Hitlers pulp novel Lord of the Swastika in The Iron Dream. Stanisław Lem was particularly enamoured with the idea of the fictional book, and wrote two volumes of reviews and introductions for them, lovingly described here by Bruce Sterling.
The future of web publishing, part seventeen million and six. Elizabeth Bear (guest posting for MetaFilter's own Charles Stross) writes about her experiences with the hyperfiction work Shadow Unit.
Inspired by Charles Stross' A Colder War and Atrocity Archives stories, noder The Custodian has written a series of fictional, Lovecraftian intelligence briefings entitled "The Benthic Wars": SPECWEAPS, DEEP BLACK, PRIOR TENANT, BENTHIC OUTREACH, PORTAL/ALEPH, VIOLET CAIN, SAKNUSSEM THUNDER and INDRA NEPTUNE. Meanwhile, others ponder the question: What if HP Lovecraft had co-invented C?
Free Speculative Fiction Online is a database of free science fiction and fantasy stories online by published authors (no fan-fiction or stories by unpublished writers). Among the authors that FSFO links to are Paul Di Filippo (14 stories), James Tiptree, Jr. (4 stories), Connie Willis (3 stories), Eleanor Arnason (3 stories), Bruce Sterling (5 stories), Robert Heinlein (7 stories), Ursula K. LeGuin (3 stories), Jonathan Lethem (5 stories), Michael Moorcock (6 stories), Chine Miéville (2 stories), Samuel R. Delany (3 stories), Robert Sheckley (8 stories), MeFite Charles Stross (33 stories) and hundreds of other authors. If you don't know where to start, there's a list of recommended stories.