A public library on Long Island is using iPod Shuffles to loan out audio books:

Checking out a new iPod now applies to more than shopping trips or web browsing. This week the South Huntington Public Library on Long Island, New York, became one of the first public libraries in the country to loan out iPod shuffles.

For the past three weeks, the library ran a pilot program using the portable MP3 devices to store audio books downloaded from the Apple iTunes Music Store. They started with six shuffles, and now are up to a total of 10. Each device holds a single audio book.