This paper is based on the proceedings of a conference held in August, 2007, where the goals were to summarize and assess the current development of open textbooks, and to describe a possible direction for future development and funding. This paper is based on the recorded proceedings of a conference held in Newport Beach, California, on August 22 and 23, 2007. This conference was attended by educators, authors, administrators of open-source based organizations, and entrepreneurs, all of whom had a stake in the concept of open textbooks. The goals of the conference were to summarize and assess the current development of open textbooks, and to describe a possible direction for future development and funded support of open textbook projects.