Section I of this report presents a factual summary of events in the St. Louis school desegregation case and updates the summary presented in Part I of this series (UD 020 284). This update covers the period from February 18, 1978 to January 31, 1979. Events summarized include both legal proceedings in the court case and activities in the community related to the school desegregation process. Section II provides an analysis of the major policy questions which have emerged in the case since February of 1978. The analysis focuses on three primary issues: the factor of socioeconomic class in the school desegregation question; the limitations of any desegregation plan confined to the City of St. Louis; and the issue of metropolitan remedy. Section III examines the general parameters within which an effective and successful plan acceptable to the various parties might fall. No attempt is made to prescribe the content of a desegregation plan. The focus is on emerging points of consensus among the concerned parties and in desegregation research. (Author/RLV)