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Is this a school project or something closer to being commercial? (Sorry to be blunt, but I guess the question is if you're just doing enough to get a grade or a paper or if you really plan to put in the huge amount of time, attention, and love to make it appealling to the masses.)
Also, keep in mind that the Reader can't handle pdf right no matter what the size. (The fonts always come out too faint.) You might consider making available RTF or BBeB format as well. Given that you're setting up a database you should consider giving people a lot of freedom in the file formats and the fonts, font sizes, etc that they download in. Combined with a nice ajax interface (ie, some sort of dynamic preview), this functionality would be very useful and could be the killer app. It seems half the conversations on this part of the forum are about doing this step well. (This will at least draw users to your site, even if you'd rather have them stick around for the social/user content component).
Lastly, if you're looking to go mainstream, remember the hardest part won't be getting it to work but figuring out how to get the servers to handle the tremendous load of distilling pdfs all day.
If you pull the above two things off well, you can rub it in gutenberg.org's nose for years.
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