Michael;
I have had somewhat simular experience. My Grandfather was a newspaperman in
Brainerd, MN and I got his weekly from the MN historical society in the form
of micofilm and had those converted into PDF files burned into cd's.
After the purchace of the microfilm ($1,800.00 - 50 yrs of weekleys - I
actually got my great grandfathers paper also - from 1881) the conversion
from a commercial house cost around $4,000.00.
If you photograph the papers on 35mm film I think the tech (slide readers?)
that will let you convert to cd's. Maybe even better get a digital camera and
cut out the film process.
You'll need a high res camera (probably $1,000.00 and and other equiptment
for another $1,000.00)
The tech is out there.
Good luck.
jim