So imagine I get asked this question, perhaps when calling someone: 図書館...何をしている。 Perhaps I am reading a book, so: [僕は]としょかん...本を読んでいる。 Here is the problem. For "...", I am conflicted on whether to use で or に in each instance and in general. I know that being at a location is に, and doing an action at a location is で, but what of this sentence pattern? Are there specific cases for whether to use one or the other?
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You are talking about some action that is taking place in the 図書館, so you have to use で.
図書館で本を読んでいます。
There is a subsidiary verb いる used to express progressive "-ing", but it doesn't interfere with this rule.

naruto
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Thank you, but how come the exception "placeに勤めています"? – BigRigz Aug 20 '19 at 03:01
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2^ It should be more like 「companyに勤めています」"work for a company", 「placeで働いています」"work in a place", no? eg 「運送会社に勤めています」「大阪で働いています」 – Chocolate Aug 20 '19 at 03:08
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1@BigRigz The particle に is both 1) a location marker used with existence verbs like ある, and 2) a destination marker. ~に勤めています is used in the latter meaning. – naruto Aug 20 '19 at 03:18
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Okay, thank you both. – BigRigz Aug 20 '19 at 03:23
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Wait, sorry. @naruto, what do you mean by "destination marker"? – BigRigz Aug 20 '19 at 03:25
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@BigRigz It's に as in 学校に行く ("go *to* school") or アメリカに旅行する ("travel *to* America"). There is no "movement" involved in 本を読む, so no に is required. – naruto Aug 20 '19 at 03:28
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Alright, thank you. – BigRigz Aug 21 '19 at 01:24