LiteralSystems have an archive of Creative Commons licensed audiobooks that are free to download and share for non-commercial purposes.
These are human-voiced readings and performances of classic literary works in mp3 format. The files can be downloaded and played using media players like iTunes or windows media player and distributed in podcasts under the terms of the license.
The collection encompasses a range of works including short sonnets to full length novels, suitable for both mature and young audiences. All materials are supported by background information and links to related resources.
Creative Commons Choice Awards a public forum for nominating the best works and artists releasing under Creative Commons.
Literary Audio Resources
LibreVox provides free audiobooks from the public domain in mp3 and ogg file formats. Podcast feed: http://librivox.org/podcast.xml (books only)
Loudlit.org is committed to delivering public domain literature paired with high quality audio performances. Listen and read using Internet Explorer or Firefox browsers (streaming audio).
Podiobooks provides serialized audio books which are made available in podcast format under Creative Commons licenses.
Project Gutenburg preserves literary and other intellectual works, and makes copies of or products based on those works available free of charge.
http://del.icio.us/popular/audiobooks popular bookmarks.
Google’s Creative Commons and Public Domain Search has further links to digitized public domain material.