I just got a sneak peek at the first chapter of Last Dragon by J.M. McDermott, which (plug time!) will be available February 2008 from Wizards of the Coast Discoveries. This is the new WOTC line of books, and judging from the chapter I read, it's going to be very successful. Last Dragon is sumptuously written, full of sensory detail and intriguing glimpses into the story's world. I'm looking forward to reading the whole thing. Oh, and it can be preordered here.
WOTC Discoveries is open to submissions here, so if you're thinking of sending something in and want to know what sells, the author said I could pass along the first-chapter sneak peek he emailed me. So just drop me a note and I'll forward it to you.
Of course, my own submission is 100% nothing like McDermott's, so I wish I'd read his chapter before I sent it. On the other hand, I now have a year to rework the book I was planning to rewrite back at the beginning of September in order to submit it instead of the book I did send, and I think it'll be a much better fit.