A demonstration project was undertaken to determine whether 1978 telefacsimile technology could address the needs of rural public libraries in a cost-effective manner. The TALINET design utilized local public library staff and a research/resource information staff at the University of Denver to research questions and deliver information to five demonstration sites via telefax. A total of 958 reference questions were answered during the study; only 28% of the questions were time-critical, i.e., the answers would have been less useful to end-users if telefax had not been available. However, telefacsimile was found to be almost the least costly information delivery methodology. This final report describes project participants, educational preparation for the project, and TALINET equipment, marketing, and procedures and methodology. Also provided are descriptions of the project's trial operations and demonstration phases, a cost analysis of telefacsimile use in libraries, an analysis of barriers to telefax utilization, a discussion of the principal benefits of telefax use and other study findings, and a review of future directions in library telefacsimile applications. Appendices comprise extensive project site descriptions, sample TALINET and patron interview forms, cost graphs for telefacsimile transmission operations, and public relations and other descriptive project materials. (ESR)