For our first issues we did a handout outside the train station, Degraves Subway near Sticky. We got all dressed up in flight attendant costumes (kinda meant to be train conductor costumes) and yelled out "Short story to " and "Free short story, get your free short story", etc. It was heaps of fun and commuters were totally taken by surprise! Check out photos at www.storyto.wordpress.com.
i used to leave zines in the ladies room of various bookstors/restaurants and things. though more often i would leave buttons with my web address on the edge. usually with tips, tucking them in places like coat pockets of community hung racks of clothes, or even slipping a business card or 1 page zine into library books.