Herman and Marguerite ($15.95; April 1996; 36 pp.; 1-56145-103-7): The subtitle of this book is ``An Earth Story,'' but this is really a lowdown tale of friendship between a worm and a caterpillar. O'Callahan (Orange Cheeks, 1993, etc.), who keeps popping up (in a black-and-white cutout photograph) in the middle of spreads, mixes natural science into his story and winds up with a rambling narrative. The younger O'Callahan's debut exhibits a real way with worms; her collage illustrations express an animation not usually associated with such earthbound creatures. (Picture book. 4-8) . . .