lucy24 - 10:51 pm on Feb 19, 2013 (gmt 0)

Since its a magazine we need a package which can scan the documents into an editable form while leaving the images intact and in the same page location as the original.

And...? Look at some of the existing web-based proofreading sites like runeberg.

The proof-reading is being handled by some local USA based college students.

You'd have done better with non-English speakers. (Appearances to the contrary, US college students do not qualify.) Native speakers are the most likely not to notice simple errors like line-break duplication, or standard scannos like u:n or o:e:c.