I have had a del.icio.us account for about a year now, and I use it to indulge my sad habit of reading fan fiction online into the wee hours. I also use it to bookmark useful resources which I need in my volunteer job, in my life outside library land. Haven't really explored the whole social networking angle of it at this stage, and tend to store and tag just for my own benefit. I refer to it on a daily basis, and can see just how useful it could be for a library.
From the examples given, I can see that libraries might tend to use del.icio.us to bookmark the websites or blogs of other libraries and museums, and RSS feed would help alert people to new posts, exhibitions, acquisitions, etc. Some libraries clearly use del.icio.us to bookmark useful Web 2.0 sites and blogs, and other useful online resources for use by staff and clients. I find the AskNow cloud very useful as a quick find tool for relevant resources while you are juggling clients on a shift. The tagging just helps to zero in on things quickly.
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