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Another possibility is that they are using K4PC to display the page on a virtual monitor and doing a screen cap of each page, sending it to their servers for OCR and then sending the results back as text/whatever to be converted back to whatever output format they may be using. That would explain the need for being online and the amount of space required since the scan is likely to consume quite a bit of disk space (I used a 5"x7.8" more or less paperback sized page scanned at 1200DPI to give ~58MB per page).
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