The procedures and setting for the establishment of a psycho-social adjustment program in the Bureau of Indian Affairs Albuquerque Indian School are described. Particular attention is given to the formal organization of the school and to other agencies having functional relationships with the school, since these factors and the physical location of the agencies seem to greatly affect the cooperation and communication between them. A major portion of the report presents a narrative account of the introduction of the project into the school and summarizes the major activities of the project team during the first year. Preliminary analyses of the types of mental health problems observed are offered to give some indication of the possible outcomes of the project and to create some impression of the type of information which is gradually accumulating. The appendices present sample case studies of a student's social history and a family interview. A related document is RC 003 321. (DK)