A TITLE III PROJECT OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965, THE CHILDREN'S ASSESSMENT-PLACEMENT-INSTRUCTION CENTER (CAPIC) STUDIES AND TREATS CHILDREN WHO MANIFEST LEARNING AND DEVELOPMENT PROBLEMS WITH NO RECOGNIZABLE CAUSES. THE REPORT, A LOG OF MAJOR ACTIVITIES CARRIED ON DURING THE PLANNING PERIOD, PRESENTS DEFINITIONS OF 24 TERMS, THE NEED FOR THE PROJECT, ITS ORGANIZATION AND OBJECTIVES, PUBLIC RESPONSE TO THE PROJECT, CHANGES IN GRANT PERIODS AND FUNDING, AND GROWTH PATTERNS. RELATED ACTIVITIES BY PROJECT STAFF ARE REVIEWED. FIVE APPENDIXES PROVIDE INITIAL SCREENING PROCEDURES FOR PRINCIPALS AND TEACHERS, AN INSERVICE WORKSHOP AGENDA AND ITS EVALUATION, A LIST OF THE TESTS USED BY PSYCHOLOGISTS, THE REPORT FORMS USED BY SOCIAL WORKERS, AND THE MEDICAL FORMS. TEN FIGURES PRESENT DATA AND REPRESENT PLANNED STRUCTURE AND GROWTH. (DF)