The Open Knowlege Foundation Blog has published "Building the Ecology of Libraries—An Interview with Brewster Kahle."
Here's an excerpt:
What are the challenges faced by the Internet Archive regarding the digitization of books?
There are two big problems: there is going and building a digital collection, either by digitizing materials or buying electronic books. And the other is: how do you make this available, especially the in-copyright works? For digitizing books, it costs about 10 cents a page to do a beautiful rendition of a book. So, for approximately 30 dollars a book for 300 pages you can do a gorgeous job. Google does it much more quickly and it costs only about 5 dollars for each book. So it really is much less expensive in less quality, but they are able to do things at scale. We digitize about 1000 books every day in 23 scanning centers in six countries. We will set up scanning centers anywhere, or, if there are people that would like to staff the scanners themselves, we provide the scanners and all of the backend processing for free, until we run out of scanners and we've got a bunch of them. So we're looking either for people that want to scan their own collections by providing there own labour or they can employ us to do it and all told it is 10 cent a page to complete.