Yep, I did indeed find it in a library basement!
Here in RI, back in the '70s, certain town libraries belonged to a "film co-op" which purchased films and loaned them out to members. I was poking around in one of our dark, dank basements last year and came across an old catalog from this organization that listed hundreds of 16mm films that they owned. It was mostly educational stuff but since I had done "film nights" in the past only using DVDs / digital projectors, which I loathe, my interest was peaked. Since I always wanted to do something using real film, I went on a treasure hunt for these (although always with the realization that they could have been tossed in the garbage years ago). Finally, I tracked a portion of the collection down to another library basement in southern RI where it had sat for years after the film co-op was dissolved. I've since found out that the majority of the films were either trashed or given to private archives / collectors but I think I made out nicely with what I've found so far, which includes but is certainly not limited to:
The 39 Steps
The 400 Blows
8 1/2
Algiers
Angel and the Badman
The Bicycle Thief
The Brotherhood
Casablanca
Dressed to Kill (40s noir)
The Glass Sphinx
Gone With The Wind
The Grand Illusion
It's A Wonderful Life
Julie
The Lady Vanishes
"M"
Man of Aran
The Man Who Knew Too Much (british)
Metropolis
Murder on The Orient Express
Night of the Living Dead
Offbeat (aka "The Devil Inside"?)
Rio Grande
Rome, Open City
Secret Agent
The Secret Ways
Stagedoor Canteen
The Stranger
The Third Man
Lots more. I'm still sifting through, it's a long process.
As for the condition, well, I'm a real film novice (to put it lightly) but I'd say they all are generally in fine condition. There are issues that need to be / are being addressed like they all need to be washed, some have sprocket issues that cause the film to start jumping around in the projector, which should be repaired or edited out, but nothing major.
I was informed by a local collector who's been helping me out that Night of the Living Dead is a reduction print or dupe (he also said that many copies of NOTLD are) but it looks fine to these eyes!
Our "screening room" is basically a large, empty room in one of our buildings. When we put chairs in it can seat around 150. It has a large blank white wall at one end which is good for projecting onto (although I would like a screen in the near future). With our projectors (two EIKI SSL-0s, and a few other backups for emergencies) at the other end of the room gets a nice large picture with our standards lenses (even bigger with the 38mm I have, looking for another one of those - HINT HINT!). We have a nice loud PA system that we can plug into as well.
I don't have any pictures of movies being shown there, or any good ones of the room in general but here's one from a concert we had last year:
As you can see from the flier, a local pizzeria donated pizza for the NOTLD screening. We'll have a popcorn machine going at this one and others, as well.