In the popular imagination, the doctrines of literalism and inerrantism about Scripture go hand-in-hand. And there may well be a positive correlation between adherence to these doctrines.
But isn't this a strange marriage? Inerrantism is basically the doctrine that every proposition asserted by Scripture is true (perhaps with an "oeconomic necessity" operator applied). On the other hand, literalism is something like the doctrine that narrative sentences in Scripture, with the exception of those that the Bible marks otherwise and those that sufficiently closely stylistically and/or contextually resemble those so market, are to be understood pretty much the way they would be understood if their vocabulary were mildly modernized and they were embedded in a present-day work of history. (It's clear that literalism is much harder to define then inerrancy—it's a slippery doctrine. It has some charateristic marks, though, such as thinking that Genesis 1 and 2 are meant to be, basically, history.)
An obvious difference is that it would be hard to both be an atheist and accept inerrance (one would have to have a really wacky interpretation of Scripture), but it is quite possible (and it actually happens, perhaps quite often) for an atheist to be a literalist.
In fact one would expect a negative correlation between adherence to literalism and adherence to inerrantism. If one is an inerrantist, then one of the exegetical tools available to one is an inference from "p is false" to "Scripture does not assert p", and this exegetical tool, together with modern science, should result in the rejection of literalism.