The Google Books project is digitizing books -- whole libraries full of books. The books will be indexed and searchable online, and will be available in full text, for a price. The library at my own institution, Penn State University, is participating with Google in scanning the full contents of the libraries of the Big Ten -- some of the largest scholarly libraries on the planet.
There's a useful roundup of the debate on the Google Books project by Miguel Helft in the New York Times this morning.
Miguel Helft, "It's Not Just Microsoft That's Balking at Google's Book Plans," New York Times, 4 April 2009.