Most of the talk on the tech sites concerning Apple's Newsstand has concerned magazines. But newspapers, too, qualify, as long as they issue an update that adds Newsstand and they offer a subscription through iTunes.
Hearst Newspapers (where I started by career) has just issued an update for the San Francisco Chronicle for iPad that adds iOS 5 support and gets the paper into Newsstand. (Original story from May on the app's launch here.)
While there have been reports that the Newsstand "store" has gone live and that iOS 5 has been issued to the public,
Once you have downloaded iOS 5 you will see all your Newsstand enabled apps there, but you can also check in Settings and see the magazine and newspaper apps under "Store" where there is an On/Off toggle for automatic downloads of updated periodicals – the default is "On".
For those downloading now, be patient, the download speed is slow, plus your iOS device has to do a restore, which adds more time to the update process.
One more thing: there is also a Mac OS X update that adds iCloud support. Needless to say, you shouldn't try and download and install that at the same time you are trying to install iOS 5.