Lug instrument and books round room? (8)
I believe the answer is:
otoscope
'lug instrument' is the definition.
(instrument for examining an ear or 'lug')
'books round room' is the wordplay.
'books' becomes 'OT' (Old Testament).
'round' becomes 'o' (round can mean a round object).
'room' becomes 'scope' (as in scope or room for manoeuvre).
'ot'+'o'+'scope'='OTOSCOPE'
'and' is the link.
(Other definitions for otoscope that I've seen before include "probe" , "medical equipment" , "Device for looking in ears" , "It's used to examine 27 ac" , "Instrument for inspecting ears" .)