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Deanw, you are right that the pdfs created by scanning are not searchable. Scans, even pdfs, are actually images. To create a searchable pdf, the font has to be embedded in the pdf which obviously you can't do from a piece of paper. That said, there are OCR applications that can convert the shapes in the image to text. We sell quite a bit of PaperPort and OmniPage, which is an excellent OCR app.

PaperPort Professional version has a built-in OCR for searching image files. From their web site: "Search for Information Locked in Scanned, Image and PDF files.
PaperPort's All-in-One Search will actually "read" all your files with the built-in OmniPage Search Indexer so you can search for a word contained INSIDE any document including scanned paper."

See http://www.nuance.com/paperport/professional/features.asp#turn

We find PaperPort and OmniPage to be pretty easy to use and easy to teach to our clients, and their rep has been very helpful.

I don't know about the CD factor; we haven't had that question come up.

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