I want to point to an excellent article by Danny Sullivan of SearchEngineWatch.com in which he lays out the differences between Google Print and Google Library. It's a long article but worth the read. One short snippet:

"Google Library is helping Google create that type of searchable index of books, that feeds into Google Print -- but Google Print does not let you then pull the book off the virtual shelf and read it online unless a publisher has explicitly given permission."

Related: Here's my summary of Google and the Authors Guild: "Google has been sued by the Authors Guild, and a number of individual authors. This follows similar threats hinted at by the American Association of Publishers. The authors and the publishers consider Google’s latest fantastic idea, Google Print — a project to Google-ize 20,000,000 books — to be “massive copyright infringement.” They have asked a federal court to shut Google Print down."