On June 24th an Alberta library had a ruling against it regarding the use of keystroke logging software. The privacy commissioner ruled the library collected personal information about the employee, going against the Freedom of Information and Protection of Privacy Act.
See the Canadian Press news story on Yahoo from July 6/05: Alberta privacy commission rules against library that monitored computer use - Yahoo! News.
See the Order from the Office of the Information and Privacy Commissioner of Alberta: Order F2005-003, Parkland Regional Library, June 24, 2005 (9 pages, PDF format).
See comments from Canadian Privacy Law Blog (July 9, 2005 posting); Michael Geist's analysis and postings by the fellow at the centre of it all on his blog Terremoto's Hand Picked Headline News. He has also posted additional documents.
Thanks to Sabrina Pacifici for the tip on this story.