Check out the following:

playing/recovering broken records at the Library of Congress in 2008 
using 'IRENE':
You Can Play the Record, but Don't Touch

An early proof of concept implementation using a flatbed scanner and 
software by Ofer Springer at the Racah Institute of Physics in 2002:
Digital Needle - A Virtual Gramophone

Also, needle-free laser turntables:

Sam Brylawski wrote:
> Do you have all the pieces? (I missed any other parts of this discussion.)
> If so, or even most of them, I would hold out on completely ruining the
> recording with a spray until you know that imaging technology, such as that
> being developed at the Lawrence Berkeley Labs and other places, could not
> restore the sound. I think that you need to protect this recording from
> those who seek to destroy it in order to have something to hang on a wall.
> Sam
> 2010/8/11 Shai Drori <[log in to unmask]>
>> Dir list
>> This is the continuation of the rescue of the recording of the declaration
>> of independence of the State of Israel. After short deliberations the
>> Israeli Philharmonic decided that the record should be mounted with as many
>> pieces of the original coating as possible to place. After doing so I still
>> have a flaking surface that I want to freeze in time so that it will not
>> move and flake anymore. The only option I can think of is to use clear paint
>> spray to make a coat on the entire surface. This will obviously render the
>> record unplayable forever, but at the stage of deterioration it's in it's
>> close to that point anyway. Anyone has other ideas?
>>  Shai