Beginning in December, 1967, the New England Library Information Network (NELINET) was demonstrated in actual operation using Machine-Readable Cataloging (MARC I) bibliographic data. Section 1 of this report is an introduction and summary of the project. Section 2 described the library processing function demonstrated which included catalog card and label services. The early months of the project were devoted to solving problems with the system. During May, June, and July, 1968, attention was concentrated on achieving a more efficient pilot operation. As part of this effort, statistics were compiled in June and July. From these statistics an estimate is made of cost per title of performing a similar operation on a full scale random access system. Appendix A contains this cost projection. The demonstration of cataloging services was suspended on July 31, 1968, and the project was redirected to setting up a MARC II based system. Section 3 describes this effort. The basic difficulty was deciding whether immediate hook-up with interim programs or delayed hook-up with permanent programs was better. The decision was made in favor of delayed hook-up and programs suiting this system are described. (Author/CC)