In 1986, the United States Department of Education contracted with Pelavin Associates to conduct a study of the dropout problem in the United States. The research project was undertaken to provide a national overview of the dropout problem, focusing specifically on gender differences; and to identify successful or effective strategies for serving dropout-prone youth and school dropouts. The research was conducted in two phases, consisting of a research review and site visits to nine dropout prevention and recovery programs identified through the review to be relatively effective in reducing the incidence of school dropouts. The findings are reported in three volumes. This document, volume II, focuses on how practitioners and policymakers can effectively address the dropout problem. Section I provides an introduction to the report and section II presents findings from the research review on dropout prevention programs. Types of prevention programs avaiable to dropout-prone youth are reviewed, as are characteristics and components of effective programs. Section III presents results of the site visits, including a comparative description of the nine programs which looks at similarities and differences in program purposes and strategies, target groups, and the services provided. An assessment of the key factors associated with different programs' success and observations about the reasons these programs appear to work effectively are also provided. Section IV presents conclusions to the study and recommendations for future action by practitioners and policymakers. (NB)