You pretty much can only sell it to one of five master distributors. You can't do it yourself - unless you want to spend time in a hillbilly jail. The five master distributors own 95% of the business. They hold control by diagraming the individual mailing laws city by city county by county. The laws are different everywhere for what/how you can distribute. People try to circumvent them periodically... and they rat you out... and get you to serve a year or so in county jail. They cut their competiton off at the pipe.
Producing is easy. Pop $1,000 to Star Agency. They will give you a pretty hot looking girl... not to skanky. Double penetration will cost extra. You can get guys from teh agency for about $200. Film on a camcorder.... lots of people shoot on 3-chip with crappy lights. You can edit on a mac.
if you distribute only on the net or through a web site. u can pretty much do whatever you want.
if you want to go big-time, and create your own porn "star", and be legit -- better work with the big boys, unless you want the porn mafia to show up at your door one night.