Wikis, another Web 2.0 tool, is an option anytime you have multiple "authors" and/or want to encourage collaboration. I can see that a wiki could be used for internal communication among staff, communication with customers, collaboration among staff for customers, collaboration among staff and customers for customers, ...
Should you use a Wiki? I think it all depends on what you want to accomplish.
The only wiki I use is www.wikipedia.com . I find it useful as an unauthoritative summary on new technologies and current trends.
If a library is considering a wiki, I'd recommend that staff think about the time line of the product they're trying to create. If you hope to build a large resource that will be used for many years to come, you should take into consideration the upgrade path and costs over the long haul. A wiki also needs to be managed to keep it on track if it was created with a specific topic/objective in mind.
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