Thanks OBG!
According to this site:
http://www.ecocycle.org/faq/shred.cfmShredded paper makes a poor choice for recycling the paper, interesting.
It seems the most popular usages are packaging, gardens (non-glossy), and rabit/animal cages.
Another usage is to make your own hobo pillows or insulation with it... this could be dangerous and useful!
I guess if I got some animals it could go in the bottom of their cage.