Exhaustively researched and analyzed, this report examines the progress states made between March 2003 and March 2004 on 40 requirements of the No Child Left Behind Act (NCLB). It also explores the issues and challenges remaining; looks at some of the policy approaches states are using to meet requirements; and offers recommendations and actions for fine-tuning the law. This report is organized around the seven major categories of the law's requirements. Each of the seven sections provides a look at: (1) How States Are Doing (graphics summarizing the progress and extent of implementation efforts); (2) What States Are Doing (examples of policy approaches within and across states and some state highlights); and (3) Issues and Challenges (a review of emerging issues and major difficulties facing states). The report notes five issues meriting immediate attention on the part of federal officials and state policymakers: (1) Embrace NCLB as a Civil Rights Issue; (2) Ensure Performance Growth of All Students, Not Just Low-Performing Students; (3) Reassess Adequate Yearly Progress; (4) Strengthen Highly Qualified Teacher Requirements; and (5) Build State and Local Capacity. Appended to this report are: (1) Recommended Actions; (2) Status of State Implementation of NCLB Requirements; and (3) Methodology.