Everyone's written about it, so you probably have already heard, but Google is planning to digitize and make searchable the library collections from Harvard, Stanford, University of Michigan, Oxford and New York Public Library.
Here's the story from the Washington Post:
Google to Digitize Some Library Collections (washingtonpost.com)
The search giant is also planning on expanding into the publishing arena, with Google Print. Their goal is to put all kinds of books within Washington search queries, giving searchers the ability to read portions of (and, if the book has no copyright, all of) books online.