An online circulation system--ULISYS (the Universal Library System Ltd.) manufactured by Digital Equipment Corporation (DEC)--is being installed in the Hawaii State Library, Kaneohe Regional Library, Kailua Community Library and Waimanalo Community/School Library. These libraries are the first users of a statewide online circulation system intended to eventually serve all of Hawaii's public and community/school libraries. The circulation project is a part of a larger automation project which has already installed automated acquisitions and cataloging modules--BIBLIOS (the Book Inventory Building and Library Oriented System) HAWAII--in Hawaii's Centralized Processing Center, which processes books for the state's school and public libraries. Other statewide areas of library operations are also intended for automation by Hawaii's Office of Library Services. This report describes in detail the automated circulation project. Following a statement of the problem are discussions of project objectives, methodology, and status; installation requirements; and evaluation criteria. Also briefly described are the acquisitions and cataloging automation projects and the planned projects for automating (1) serials control; (2) the acquisition, storage, and distribution of Hawaiiana; (3) the processing of non-book material; and (4) a management information system. A separate appendix reproduces DEC equipment descriptions and specifications and DEC price data. (ESR)