The first of two phases of this study consisted of assessing the need for a more formal library network in Virginia by surveying libraries, conducting site visits, interviews, and regional hearings, and reviewing documentation on existing levels of automation and networking in the commonwealth. Information gathered during this phase supported both the need and the desire for a more formal library networking configuration. Phase 2 focused on the development of alternative strategies for the evaluation of the more formal configuration, and the development of specific recommendations for a phased implementation plan for library networking in Virginia. The final report provides an executive summary, background information on the project, an overview of the needs of Virginia libraries, a list of the 15 recommendations that resulted from Phase 2, and the formal plan produced by the project. This plan covers the purpose of the network; its legal structure and governance; membership criteria and levels of participation; network services; implementation activities at various levels, including a schedule for implementation; and a summary of projected costs. The complete report for Phase 1 includes a description of study methods and a detailed report on the findings of the needs assessment. Data tables and survey forms are among the extensive appendices for this phase. The report for Phase 2 describes in detail various networking alternatives and spells out the proposed plan. Five references, a 31-item bibliography, a detailed cost analysis, and a discussion of options for networking components are appended to this interim report. (KM)