  We present calculations of heavy quark and quarkonium production at CERN LEP2
in the k_T-factorization QCD approach. Both direct and resolved photon
contribution are taken into account. The conservative error analisys is
performed. The unintegrated gluon distribution in the photon is taken from the
full CCFM evolution equation. The traditional color-singlet mechanism to
describe non-perturbative transition of heavy quark pair into a final
quarkonium is used. Our analisys covers polarization properties of heavy
quarkonia at moderate and large transverse momenta. We find that the total and
differential open charm production cross sections are consistent with the
recent experimental data taken by the L3, OPAL and ALEPH collaborations. At the
same time the DELPHI data for the inclusive J/Psi production exceed our
predictions but experimental uncertainties are too large to claim a significant
inconsistency. The bottom production in photon-photon collisions at CERN LEP2
is hard to explain within the k_T-factorization formalism.
