Okay, been there, done that. I was losing money on sales through Mill City too before they restickered the books, which put me into positive territory, just barely. Not understanding how all this worked, and hence not cramming more type onto each page, to reduce the number of pages and consequently the cost to make each book, is the single biggest mistake I made in the entire error-fraught self-publishing process; but what's done is done.
Long story short, I've gone instead with Amazon Marketplace. I've become one of those people offering new or used copies of books that you can link to on every book page on the site. By setting the price at $15 (lower than some, higher than others), and fulfilling orders myself (Amazon gives you a credit for doing that, which lets you break even on S&H or just about), I make on the order of $2 per sale. It ain't much, but you gotta admit it's better than losing $2 per sale.
My gimmick, if you want to call it that, is to identify myself as the author and offer inscriptions. You can check it out at http://www.amazon.com/Bird-Shaman-Holy-Ground-Trilogy/dp/0980245540/ref=sr_1_3?ie=UTF8&s=books&qid=1217259849&sr=1-3
I have between now and July to decide whether to spend another forty bucks and buy the page Mill City owns at present, so everything still looks like it looks now, except that The Bird Shaman will never be In Stock.