Here's my take on setting up a storytelling corner and implementing a Storytelling Program in the library.
Dear Augie --
Any corner in the library that is well lighted and well ventilated will do. Choose a space that is also near the picture book collection. Make it comfortable so that children would feel relaxed. Pillows and mats will make it so. What does it imply? Reading and storytelling is not stressful. No pressure. It's fun! And it should be. Unlike in the the classroom, storytelling and read alouds are done to teach a reading skill, the library storytelling sessions are all about developing a genuine love for books and reading (It sounds so cliche now, but it is how things SHOULD be).
As for the program, ideally, storytelling is integrated in the Reading class or in the pre-school literacy program.
Coordinate with the Reading teacher from schedule, time, number of kids, grade level of kids, to storytelling activities that the librarian will do. Make a storytelling plan that is similar to what the Reading teachers make. It must contain the objectives, pre-activities, storytelling proper and post-storytelling activities. When you choose stories, again, consult the Reading teacher. Is this a session for enrichment or for intervention?
If the storytelling is for an event, say, Literacy Week, UN Week, Filipino Week, draft a proposal addressed to your supervisor. Objectives, resource person, logistics, evaluation, etc. must be identified.
I suggest you visit my blog and type in the search box Storytelling. I think I have written many posts on storytelling that may help you.
Good luck in your endeavors!