Library Thing is a great interactive way for people to organize and share their book interests. In a way it is like itunes meets facebook for book nerds. I think the interface is nice because it allows you to see the covers of the books, an experience that is missing in the digital realm. Again this is a lot like itunes or any other music organizer.
I really like the idea of using library thing to highlight new books in a library's collection. It could also be a way for patrons to compare their book interests to the library and find new books. Another idea I liked was adding a library thing feature or link from a library's OPAC. This could draw patrons who generally go straight to the catalog into a library's 2.0 efforts.
As far as archives go, this tool is fairly limited in use. Archives deal with unique materials rather than published materials, so there is no equivalent. The closest thing I can think of is something for pictures, like flickr, where an archive could upload its photo collections and users could find similarly tagged photos.
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