cr0sh:
What would be nice, though - is if you can somehow get your community to write and submit articles (good articles), and have them compiled into a downloadable PDF each month. I can envision a site where there's a forum, plus each member has a profile page where they can "blog" - then you have other members rate blogged articles monthly, and top 10 (or whatever) get a slot in the magazine at the end. There would still be a fair amount of design and layout work needed as the "deadline" rolled around, but most of it could probably be taken care of by the website design itself...
I think this is the most likely idea. It's fairly straight forward to set up a decent blog site given the how good the various blog engines are, and it'd be cheap too.
Get that going with a decent number of articles and good community support (thus making it clear which are the most popular articles) then launch the mag. Change it so the front page of the site is all about the mag, have the blog as a secondary think (bit like the forum here). With a bit of luck readership would be far in excess of active blog members but the blog would still be healthy.
You could start of with a newsletter rather than a magazine, highlighting the best of the blog, best external links and maybe letters to the editor.