I got a hit on craigslist - a woman who owns a store noticed my ad on craigslist and wanted to sell them in her shop! It is hit and miss, but it is free!
I also place my items on Graig's list and you can add up to four photos. Craiglist is free unless you post in a major city. Craig's List uses the larger cities to pay the freight for the small towns.
I live in a larger city and its free to post. I consider seattle a larger city. but i guess it depends where you post the ads. I typically post it in the general forums area or the for sale jewelry area.
from what i've gathered at least for us... it only costs to post job listings.
I think each city has their own site that is similar to this as well. A friend of mine buys things when she visits her mother from usedcalgary.com and she says there is the same thing for Toronto, so perhaps check out that possibility too. It's free to post.
I spend some time on etsy forums, we love etsy, and flickr. I second what Keira says about wearing your own stuff out. Then, when people comment on your work, you can pass out business cards.
I recently move to an apartment complex and I printed fliers with pictures and the link for my Etsy Store, I just slipped them everywhere, also you can prepare fliers and leave them in places where people can pick them, thats going to be my next step.
Good Luck :-)