Thanks to everyone who responded to my plea for information on examples of public libraries that are using innovative ways to display their collections (rather than the traditional spine out in strict Dewey order).

I've compiled a list of most of the libraries in case it's of interest to anyone else on the list:

Palmerston North City Library (NZ)
http://citylibrary.pncc.govt.nz/what_weve_got/
The Palmerston North City Library uses a unique “living room” approach to arranging their collections.

Queens Borough Public Library (New York) USA
http://www.queenslibrary.org/branches/index.asp
All of the 63 branch libraries have some form of book store display. There are pictures on the library web site.  Each branch site has several photos on it, which shows some of their displays (click on the inside library photos for a better view).

Ironwood Branch of Richmond Public Library B.C. Canada
http://www.rpl.richmond.bc.ca/rplinfo/ironwood/
Contact: Cate McNeely [log in to unmask]
At first glance walking into the new branch one might think they are in a high-end bookstore. Hundred of copies of popular bestsellers are displayed with front covers facing out. State-of-the-art maple display carts hold listening stations and hundreds of music CDs. Refreshments are available in the Library's Living Room where customers browse through 50 magazines and newspapers while enjoying a coffee in a comfy chair beside the river-rock fireplace.
 

East Brunswick Public Library, New Jersey, USA
http://www.ebpl.org
Has displayed new fiction, new non-fiction, new biographies, large print books
and uncatalogued paperbacks on Showbest display fixtures for about 15 years.
The paperbacks are by genre. The other collections are shelved loosely in
Dewey order and combined face out and spine out, the ratio dependent on the
number of books on the shelf. The regular nonfiction collection is still in
Dewey order. The nonfiction videocassette collection is arranged topically
-- travel, self-help, etc. -- not by Dewey order.

Baltimore Public Library USA
http://www.bcplonline.org
Link to photos of displays the branches made for the Summer Reading Club:
http://www.bcplonline.org/kidspage/src2001/src01_branchdecor.html

Minds Eye (UK)
http://www.readersonline-europa.com/mindseye/promoters.asp
Mind's Eye is the first national reader-centred promotion for non-fiction. It uses approaches developed in fiction promotion in libraries which start from the reader and the experience of reading, rather than the author, genre or title.  Mind's Eye provides high-quality point of lend material to promote a collection of new narrative non-fiction, creating high visibility for stock which is difficult to classify and sometimes gets lost amongst traditional non-fiction titles.

regards, Mylee