Greg's got it right, if you give your "Navy" photos to the DPL, for use buy the public, then the DPL has rights as to what to do with the images, make them in to a collage, have a painting commissioned on the basis of your photo, make christmas cards with them on the front, sell one to me to put on the cover of a book, make paint buy number kids books, colorize, digitize, cut paste, slash, or even burn in a camp fire. To bad you gave it to someone else to decide how your art would be interpreted. If greg had stole these images and colorized then you had a point, but these were given to him buy the current owner of the image, the print, the copyright, the art - the whole bannana - I believe that credit should go to the orginal photographer, but the rights of what can be done with the image went to the DPL when they were donated to them.
Under your strick guidelines of use of the photo, I wonder what you think of cropping the original photo, or for that matter, blowing it up to see deatails on a two page spread - that has got to be larger than the original film negative. I mean just because Otto Perry shot the image way back when, does it make it wrong to digitize the image and put it on the DPL web site?
Give the guy a break.