One of a series on the responses by the Educational Testing Service (ETS) and others to critical problems in education, this overview addresses a variety of issues related to computer literacy. Topics discussed include the pace of the transition to the computer age, the development of microprocessors, and the computer as fad or revolution. Problems related to definitions of computer literacy are examined and computer uses in the classroom are described, including projects in innovative schools such as the Waterford School (Provo, Utah) and Lamplighter School (Dallas, Texas), public schools, the Minnesota Educational Computing Consortium, and college computerization projects. A planned ETS program to offer Advanced Placement in computer science is outlined, and a summary of issues related to microcomputers notes problems of inadequate software, software evaluation, and teacher training. Discussions of the impact of computers on education and implications for public education, a description of ETS seminars for elementary and secondary educators, and a glossary conclude this state-of-the-art review. (LMM)