A proposal for a library project for mentally and physically handicapped persons at Custer State Hospital includes a listening library for the residents of the hospital with a cassette player in each resident's room. Tape storage would be at the nurse's station on each floor, and the charge nurse on that floor would be responsible for the tapes. Circulation of the software would be done by resident's aides at the beginning of their shifts. Also proposed are listening booths to be set up on each floor, for those residents who are not bedridden. (AP)