Jenny reports that Exter PL in Rhode Island is using Netflix: http://www.theshiftedlibrarian.com/archives/2007/04/22/exeter_public_library_does_netflix.html
Take a look at the comments at the EPL post as well:
http://131.109.225.131/exelib/2007/03/netflix-your-library.html
Please let us know how it goes, Exeter library folk!