Part I is a discussion of the following project tasks: A) development of an on-line, real-time bibliographic data processing system; B) implementation in library operations; C) character sets; D) Project MARC; E) circulation; and F) processing operation studies. Part II is a brief discussion of efforts to work out cooperative library systems development. Part III lists projects and task efforts in man-months. Part IV lists tasks underway and projected for 1967/68. Appendix A includes samples of bibliographic data input worksheets and output catalog card array. Appendix B is a paper given by Charles T. Payne May 1, 1967, at the Clinic on Library Application of Data Processing conducted by the Graduate School of Library Science, University of Illinois, covering the problems and progress of the project. (CC)