Russ - *now* you are into performance rights in addition to copyright! (re: reading a book aloud. I believe technically to be legal it needs to be in private, which also has a strict legal definition. If you were to read itin public - then technically you should be paying performance copyright fees. (even if you didn't charge for it))
I think you will find libraries are very particular about having permissions regarding materials they post on the web - or making sure they are public domain.
For example - the Lester Levy sheet music site - if you see an image of the sheet music they have cleared it as being out of copyright. the *images* however are under copyright and may not be downloaded and used as the image without permission.