Since you are using the free uploader, respect the server resources. The Archive runs on donations and grants; do not abuse the bandwidth.
Yes. Completely. The Internet Archive is a non-profit digital library. While users can donate, uploading content to the general collection (or specific sub-collections like Community Texts, Community Audio, or Community Software) costs nothing. The "170" uploader is simply a gateway to that free service.
Yes. The uploader is a proprietary tool integrated into the Archive.org website. When you see files labeled with "Internet Archive HTML5 Uploader 1.7.0," it generally means:
Before uploading files, you must create a "bag" (the digital container for your item).
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