If this is true, it's more than a little frightening. TIME Magazine:
Stein says that as mayor, Palin continued to inject religious beliefs into her policy at times. “She asked the library how she could go about banning books,” he says, because some voters thought they had inappropriate language in them. “The librarian was aghast.” The librarian, Mary Ellen Baker, couldn’t be reached for comment, but news reports from the time show that Palin had threatened to fire her for not giving “full support” to the mayor.
There are quite a few accusations flying around out there at this point, and I seriously hope there are reputable sources behind them. John Stein, who is quoted above, was Palin's predecessor in the Wasilla mayor's office and was subsequently defeated by her, so there could be a grudge behind the story. However, if all of these stories check out, we should be very worried about a McCain-Palin administration.