Yes. There are two projects. There's the Google publisher program and then there's the Google library program. Together, they're referred to as the Google book search program. The one you're thinking of is that we made copies of books that were in libraries. We made those searchable, but we never presented the full text of those books unless they were in the public domain.
Some people feel that merely copying a book, even if you don't present the full text of the book, even if you present only a snippet of it, violates copyright. We took a different position. We think that--in the U.S.--it is fair use.
But these were two conflicting legal views and the parties were fighting them out. At the end of the day, we came to a settlement. That settlement, if it is approved by U.S. courts, will result in new opportunities for publishers and for authors to find all sorts of ways to monetize many works, and for some of them, the market has been dead for decades.