Recycled content is when a site owner takes content from another location, usually rewords it and posts to their site as if it was their own. This practice is most used for mini-sites and blogs.
Is this practice ok?
Within reason, yes.
Mini-Sites
I have several mini-sites that I have definitely done this with. A perfect example would be a poker site of mine. The site provides information on how to play games like Texas Holdem and Omaha. Using my site as the example, there are only so many ways I can write an informational piece on Texas Holdem and make it understandable.
Blog
I am sure I have used this for news, again, how many ways can you report the same story. I cannot say that I have used this for my blog articles. I may get an idea or believe something to be useful to my readers by visiting other blogs. In those situations, I will normally test out what I have read and create a new article based on my experiences.
I have two words for those that recycle content, public domain. Public domain is a term for intellectual properties not owned by anyone. The full definition is way to long, visit Wikipedia for the full version. From what I was recently told anything written before 1923 is considered public domain. You can actually take an entire book written before 1923 and resell, reword, retitle or anything else you want and call it your own. Before using this technique please do your own research, I visited a site called copylaw.com.