Focusing on the use of microcomputers as "smart terminals" for accessing time-sharing systems for libraries, this document discusses the communications software needed to allow the microcomputer to appear as a terminal to the remote host. The functions which communications software programs are designed to perform are defined and explained, including communications protocols, keyboard redefinition, screen display, RAM Buffer Operations, uploads, downloads, editing, printer controls, and keyboard macros. The operational aspects which are important for efficient use are reviewed, as well as those which facilitate operator training. Other communications applications for microcomputers are explored, such as electronic mail and bulletin boards, micro-to-micro file transfers, and use of smart terminal software to download data into local files. Because such smart terminal software packages are hardware dependent, information is provided to aid in software examination, which should be conducted as part of the evaluation and selection process if the hardware has not been already purchased. More than 75 software programs are listed, with publisher, price, and hardware information. A glossary and bibliography are provided. (Author/LMM)