This report provides an examination of literacy activities supported by 245 grants awarded to public and state libraries under the Library Literacy Program, Title VI of the Library Services and Construction Act (LSCA), during fiscal year 1987. Following an overview of the Library Literacy Program, projects are reviewed and categorized according to 10 major subject headings, each of which constitutes a separate section: (1) General Literacy Services; (2) Coalition Building; (3) Public Awareness Campaigns; (4) Training: Librarians, Tutors, and Trainers; (5) Collection Development; (6) Targeted Populations; (7) Computer-Assisted Approaches; (8) Employment Oriented Projects; (9) Rural Projects; and (10) Shoestring Projects. Each section discusses the common elements that characterize the projects and includes selected examples. At the end of each section is a list of project grantees. Three appendixes are included: statistical information and analysis (funding history; fiscal year 1987 applications; and comparison of fiscal years 1986 and 1987 applications and awards); projects listed by state and library (provides library name and address); and activities engaged in by LSCA Title VI projects. (CGD)