MagMyPic.com has a whole bunch of magazine templates. You just upload your photo (use one that has lots of headspace to leave room for the magazine title) and choose from a few dozen pre-made templates.
You can then publish your magazine to your own social networking profile, website, blog, or anywhere you’d like. You can also download the file in a variety of sizes to your computer. MagMyPic.com also offers prints of the unique magazine covers in a variety of sizes.
One thing which it lacks is inability to let users add their own headlines. One gets kinda bored with this after a while, so they need to come up with new features and more stuff to sustain.