I've gone the tidixon route, but I prefer conversion to text with Abbyy Fine Reader. That is software that turns your loose-leaf book back into word processor text. A paper cutter is probably safer than a saw, but I've used the old band saw.
Folks have used OCR on screen scrapings to read Adobe DRM books, but the Fictionwise .LIT path is the quickest approach. It may be a crime, depending on where you live, but it seems really hard to prosecute.
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