I think you guys are getting too complicated too fast...
simple implementation would be:
- library room (setup like any other room but from a bookcase furniture type)
- books (doesn't matter what you call them, they've got writing or communication on them)
- skill like swimming and conversationalist --> Literacy
- creation of the "trade" object being the book/paper/binding which would be stored in the bookcase
figuring out the materials for the books for different races can come later, and would also be a product of figuring out what a "book" would be called when created from the different workshops.
later on people can add on more and more to the idea of education to the game, where you even add a new stat along with agility and toughness... Smarts, which allows for a multiplier on experience gained->leveling of a skill.
even with just 3/4 of the first list would add a whole new dimension to the game in itself and lend itself to a great deal of modding 
anyway, I'm not trying to stop the discussion, it just seems to be blowing way out of proportion