Last Thursday, publishing-industry veteran Nan Talese was excoriated on television by Oprah Winfrey for publishing James Frey's 2003 "A Million Little Pieces," a bestselling memoir about the author's struggle to overcome drug dependency that he has since admitted is partly fictitious. But on Friday morning, Ms. Talese walked into 22nd-floor offices in Midtown Manhattan to a standing ovation from her colleagues. Soon afterward, she received a call of support from Peter Olson, chief executive of Bertelsmann AG's Random House Inc. publishing arm. "I've gotten more than 500 emails over the last few days, and the overwhelming majority have been supportive,"...