The simultaneous implementation of Reading Recovery (an early intervention program designed to help children "at risk" of failure in their first year of reading instruction) and Chapter 1 programs in schools raises a number of issues as educators attempt to provide effective reading instruction within the policies and guidelines of both programs. This paper discusses five implemention issues and possible ways of addressing them. The issues are: (1) selection of students; (2) evaluation of effectiveness of Chapter 1 and Reading Recovery Programs; (3) number of students served; (4) coordination of reading instruction; and (5) accounting for Chapter 1 funds used in support of Reading Recovery Services. Each issue is examined in turn and possibilities and/or suggestions for the resolution of each are discussed. The implication of this analysis is that both Chapter 1 and Reading Recovery policies and practices may need to be adjusted so that each may accommodate the instructional and accountability needs of the other. To accommodate both approaches, educators need to address the dilemmas surrounding these issues. (Twenty-seven references are attached.) (RS)