Wain, Matthew wrote:
> What effect will that have on existing user's using older versions of iText 
> code in there current commercial projects/products?

The older versions will no longer be supported, and will eventually die.
Starting a new project with an old iText version is like investing in
VHS cassettes when everybody starts using Blue-Ray disks.

> What effect will it have using the latest iText (v5 or whatever) in any 
> future * products/projects? 
> i.e. Will we need to pay for it?

No, as long as you make the source code of your products/projects
available for free as AGPL software, you don't have to pay anything.
BUT: as soon as you develop commercial activities with the new iText,
you'll have to pay a fee to be released from the AGPL restrictions.

I see that you're working for a governmental organization. This means
you probably won't develop any commercial activities, so it will be
sufficient if you make sure the users of your project/product have a
way to get the source code. I quote the AGPL: "For example, if your
program is a web application, its interface could display a "Source"
link that leads users to an archive of the code."

> I don't want to get into a situation where I recommend switching all our code 
> to iText from ManyImage (IBM)
> to find out we are financially tied in without realising it.

If your project is Free Software, then you don't have any financial
obligation. That's what Free Software is about.
As soon as you expect to make money with your product, you'll need
to pay a fee. That's fair isn't it? iText isn't "free beer" ;-)

Before you ask: I can't give you a concrete price for an iText license,
because that depends entirely on your use of iText. Contact info for
sales inquiries can be found here: http://itextpdf.com/contact.php

It's obvious that a small company using iText to create online invoices
for its customers won't have to pay as much Google will have to pay if
they decide to upgrade iText in Google Analytics, Google Calendar,
Google Docs, etc...
-- 
This answer is provided by 1T3XT BVBA
http://www.1t3xt.com/ - http://www.1t3xt.info

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