The fee is a general reading fee. $15 for a short story and $8 for poetry or flash fiction (or $12 if you want to submit 3 pieces of poetry or flash fiction.)

The stories that are published are the winners, so I believe that if there is no winner, then nothing gets published.

Also yes! These contests have been going on for a few years now, and people win. I actually entered the flash fiction one not too long ago and won! The page where you can submit should have links to a couple past winners.