As librarians cope with reduced budgets, decreased staff, and increased demands for services, microcomputers will take a significant role in library automation by providing low-cost systems, solving specific library problems, and performing in distributed systems. This report presents an introduction to the technology of this low-cost, miniature computer and a description of its specific applications in libraries. The use of such computers in circulation, acquisition, serials control, reference, administration, and audiovisual services is covered, and current and probable future uses of the microcomputer in each of these areas are described. References are listed at the end of each chapter, and appendices provide glossaries of computer and library terms and a list of vendors supplying automated library systems. (Author/JD)