Technically I think it *is* copyright infringement to scan a copy of a book, even if you don't distribute it. Copyright law applies to the *copying* of content, not the distribution. I'm not saying I agree with copyright law, I think it mostly sucks. The problem is that it was invented for a time (around 400 years ago) when any act of copying was probably going to be for commercial use, since printing machines were so expensive. The problem is that that law makes no sense in the computer age.
Katie, I never understood the legal basis under which you got shut down. Can you talk about it? I don't understand how TSL is copyright infringement. It uses likenesses, and places, but you didn't actually *copy* any content. You re-created all of the scenes. Was that enough to constitute copyright infringement? I can see why it was a trade mark dispute (and it seems reasonable for them to ask you not call the game "King's Quest"), but I never saw how it was actually copyright infringement. (My guess is that it's more likely that they simply threatened you, and knew that you couldn't afford to fight a legal battle with them.)