How would you handle this? -- Finder's fee?...

I wouldn't touch that, TW, for one simple reason: the person you are dealing with is dishonest. If you deal with basically dishonest people (thieves) you can expect to get zilch for your efforts and probably make an enemy of the person you get to do the actual work.

Before anyone says anything about me being too straight laced, let me say that using another's materials and giving appropriate acknowledgement or with their permission is one thing but to rip off another's efforts wholesale, even with some minor changes, is a whole other kettle of fish.

I know PLR allows you to do this but this is obviously NOT a PLR case or they wouldn't put the phrase 'to avoid plagiarism' in the email.

The fact that they tossed in the words original content and research that you do doesn't change the very obvious fact that what they really want to do is steal someone else's work without getting into legal hassles. Obviously they don't mind handing the risk and consequences to someone else either. Not folks I'd want to deal with.

As a writer I can tell you that it is quite common to read various materials and then synthesize the aggregate into your own thoughts and expression. That's a whole different story than outright copying someone else's work with just fringe changes 'to avoid plagiarism'. Note the word 'aggregate'...ie: from various sources is implied in the definition as a 'gathering together as in a heap'.

Hope this is helpful even tho' it's not what you asked directly.

Sandi Bowman