This memorandum from the federal Office of Special Education Programs (OSEP) to state directors of special education presents questions and answers related to inclusion of students with disabilities in state and district-wide assessments under the Individuals with Disabilities Education Act Amendments of 1997. The 26 questions and answers address accountability, individualized education program (IEP) processes, parental permission, accommodations and modifications, alternate assessments, out-of-level testing, reporting, and monitoring. Among specific topics covered are the following: requirements for performance goals and indicators, use of assessment results, the role of the IEP team, parental permission under various state standards, the definitions of "accommodations" and"modifications", alternate assessments for students unable to participate in general assessments, requirements concerning establishment of participation guidelines, requirements of local education agencies concerning alternate assessments, difficulties with use of out-of-level tests, required reports on assessment, requirements for aggregation and disaggregation of data, and monitoring by OSEP of compliance. (DB)