The Columbia University Libraries have announced that they will work with Microsoft to digitize a "large number of books" that are in the public domain.
Here's an excerpt from the press release:
Columbia University and Microsoft Corp. are collaborating on an initiative to digitize a large number of books from Columbia University Libraries and make them available to Internet users. With the support of the Open Content Alliance (OCA), publicly available print materials in Columbia Libraries will be scanned, digitized, and indexed to make them readily accessible through Live Search Books. . . .
Columbia University Libraries is playing a key role in book selection and in setting quality standards for the digitized materials. Microsoft will digitize selected portions of the Libraries’ great collections of American history, literature, and humanities works, with the specific areas to be decided mutually by Microsoft and Columbia during the early phase of the project.
Microsoft will give the Library high-quality digital images of all the materials, allowing the Library to provide worldwide access through its own digital library and to share the content with non-commercial academic initiatives and non-profit organizations.
Read more about it at "Columbia University Joins Microsoft Scan Plan."