Authors using their own works as sources in other works isn't new.� The 
Eyrie guys do it all the time.� John Biles has done it once or twice, I 
think Chris Davies did it in Together Again....� Now that I think of it, I 
did it with my own works.� (Think about it, Turn the Page incorporates 3 of 
my other works as source, but is an AU from all of them.)

Hell, take a look at some pro authors:

Michael Moorcock's Eternal Champion books
LE Modesit Jr. is the grand master of cross contamination
Mercedes Lackey does it now and then in her Serrated Edge books

Speaking of cross contamination, Stephen King has been known to throw 
aspects of his other stories into his books, most notably the using the 
series
'The Dark Tower' to do so.  Many of his books, from 'Hearts in Atlantis', to 
'
Insomnia'. 



"I can't take his money.  I can't print my own money.
I have to work to -get- money.  Why don't I just lie
down and DIE?"
Homer Simpson


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