Check out "fair use" in the copyright legislation and you will be surprised what people are allowed to do with your content. It matters not what you put in your policy but it does matter what is written in the legislation.
After you read about fair use, visit
http://www.aboutus.org/JamesPoirier.com and
http://www.isthisyour.name/amy_fenton.htmthese places are both in violation of the "fair use" portion of copyright law because they are for profit as you can see hotlinks to advertisers being randomly inserted on relevant keywords in your own content. The first one is just blatant disregard - what graphic designer wants their site represented by a #%$!py looking screen grab reduced in size and quality!! Absolutely offensive... aboutus.org ought to be shut down or forced to change their copyright infringing practices. The second one is equally rude and inconsiderate not to mention it just doesn't work properly. The articles on Amy Fenton are stolen from my blog and the paragraphs shown at isthisyour.name have my name on them even though I didn't write them myself. (blogs show the name of the poster which is usually the owner/editor) They are infringing on copyright and putting my name to it!!