The Wheeler Taft Abbett, Sr. Branch of the Pima County Public Library (Arizona) has installed one of the Burgeon Group Libraniums, which includes print in many types of furniture and play sets. Check out the library's Flickr stream of the renovation.
This Flickr set is from someone who attended or worked on a presentation at PLA 2008 for creating interactive early literacy environments. These are not expensive projects, and they don't take up extra room in the library. Anyone can create literacy stations like the ones pictured in these photos!