This is very detailed accounting of where the Google Book Search effort is at with regards to their library scanning endeavors. There are many helpful links and a good overview of all the major issues.

Quoted: Like Harvard and the NYPL, Oxford continues to explore how best to use its digital copies. When asked to describe how his library currently uses and/or plans to use digital copies received from Google, Popham replied, “At the moment, we are simply planning to archive and preserve our copy of the data generated by our joint project with Google.” Popham went on to say that Oxford will link from its catalog record to the images hosted at Google [http://books.google.com]. Finally, Popham explained, “The scale and scope of this project is such that we are only just beginning to consider some of the possibilities that this work may enable.”