I love design challenges, Libraries, and Anna, so this one was a no brainer. So the first thing I did was make sure I had a clear understanding of transliteracy and how it related to libraries, and so I dod some research, starting but not ending with the ubiquitous Wikipedia entry, which gave me a good start, defining Transliteracy as:
“Transliteracy is The ability to read, write and interact across a range of platforms, tools and media from signing and orality through handwriting, print, TV, radio and film, to digital social networks. (PART 2007) The modern meaning of the term combines literacy with the prefix trans-, which means “across; through”, so a transliterate person is one who is literate across multiple media.” from Transliteracy – Wikipedia, the free encyclopedia at Sun Jul 18 2010 14:12:31 GMT-0400 (EST) on http://en.wikipedia.org/wiki/Transliteracy
A few other sources extended, reinforced and clarified the definition. Thanks for the nudge, Anna, and I hope my answer gets to the finals!