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Thank you all for the great ideas and actual web sites for services!

This was the TARGET:
 I am volunteering to help in our church library, specifically the children's
section.  At this time there is no circulation system other than cards to
sign out the  books.  I would like to update and, if possible automate.  Is
there a system out there for small libraries that would be easy to use, self
serviceable, and not too expensive?
       Please send your suggestions for setting up and running this much
needed library.  Thank you in advance for your help!  I will be glad to post
a HIT with the information you all share. :)

Following were your responses:
******************
You might want to check out   "resourcemate" - I've used it in a church
library or two and I also use it in my rather small Christian high school
library (less than 10,000 volumes).  I've found the support they give me
wonderful and the product is not that costly.

http://www.resourcemate.com/

******************

You might check into Concourse by Book Systems.  It was created
specifically for churches, though it is also now used in schools.  The
website has a demo you can try.  http://www.booksys.com/

******************

You might want to check the Archives for LM_NET. Small church library
circulation systems seem to come up fairly regularly.

******************

Thank you all!     Julia Butler
                         Graduate Student
                         Longwood University
                         jijubutler@aol.com

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