NASA looks that Idea
http://www.nas.nasa.gov/Services/Education/SpaceSettlement/75SummerStudy/Table_of_Contents1.html
O'Neill Idea is very good, Build you own World
but the cost :

alone 500 Bilions US dollar only for Factory, Lunar base and contruction site
In Sci-Fi they came so popular,
like theAnime series GUNDAM
its became a Cliche..
that today a SF author is stoned with own books, if he dears to wright about O'Niel
But here some Sci-Fi Classic
Arthur C. Clarke "Rendez-vous with Rama"
http://en.wikipedia.org/wiki/Rendezvous_with_Rama
http://ebruneton.free.fr/rama3/rama.html
John Varley "Gaea trilogy" (Titan, Wizard, Demon)
who play on "Living" Stanford torus habitat
http://www.ammon-ra.com/gaea/main.html