Well, it seems that you are considering the librarian as an independent contractor and hence you are paying her a 1099-Misc for an amount that is a small stipend! Clearly, it seems that you have complied with the reporting of this income to the IRS in the form of a 1099-Misc, but, your question is more towards the legality of reporting her in this manner as opposed to including her income on the W-2.
There are elements of the librarians work that would help classify her as an independent contractor and these would support your case to consider her as a 1099-Misc contractor. But, clearly, there are some elements of the librarians working for your organization that would not support your case. However, if the amount happens to be a small stipend as you say, I would not be overly concerned in 2009.
But, to be safe please review the following link below to determine whether or not you can satisfy the IRS litmus test for classifying your employee(librarian) as an outside contractor/independent contractor. If it seems that you do not meet the tests, in 2010 I would report her income as a W-2 employee, the reason being that the IRS is getting very strict in this area and scrutinizing a lot of companies that are reporting employees incorrectly as 1099-Misc income. The consequences is of incorrectly reporting employees is potential penalties and interest related to not paying the payroll taxes applicable to the income reported on the 1099-Misc on a timely basis
. Will your employee's status as an outside contractor pass the IRS litmus test?