Inside Report (5)

The National Rifle Association is taking aim at a small Chicago suburb in its most recent pitch to members for funds. The Village of Morton Grove, Ill., has gone beyond most local gun-control efforts by banning private possession of handguns. Terming Morton Grove the ''watchword for the most dangerous attack ever staged against the right to keep and bear arms,'' the NRA fund-raising appeal from executive director Neal Knox notes that ''our opponents are better organized and better financed than ever before'' and that ''the situation is bad.'' The NRA Institute has a suit pending against the village's gun ban in Cook County Circuit Court.

Meanwhile, ABC television is offering residents substantial sums for the rights to their personal stories as the basis for a two-hour docu-drama on the enactment of the gun ban there.