The New Yorker has a podcast where famous authors read short stories from the New Yorker's archive and discuss them as well:
http://feeds.newyorker.com/services/...on_podcast.xml (podcast feed)
http://www.newyorker.com/online/podcasts/fiction (web site)
http://phobos.apple.com/WebObjects/M...t?id=256945396 (iTunes feed)