Over a four year period, the Continuation Education System Development Project will develop a practical instructional system capable of continuous identification and efficient response to the critical instructional needs of individual continuation high school students, or those who drop out or are pushed out, in La Puente, California. The purpose of the research reported here was: (1) to discover all the skills a Valley student must have and the knowledges he must possess to succeed in his present home and community situations, (2) to discover the present capabilities of Valley students to perform these skills and exhibit these knowledges, and (3) to compare the expectations with the capabilities to determine the needs of Valley students. The first part of this report deals with determining data collection procedures for skills needed for adequacy in home and community living. A critique of these procedures is given in Part Two. Part Three gives findings relating to: (1) health and safety, (2) child development, (3) clothing and textiles, (4) home management, (5) family relationships, (6) housing and furnishings, and (7) food and nutrition. (See CG 004 283, CG 004 401, CG 004 405, and CG 004 407-409). The research reported herein was funded under Title III of the Elementary and Secondary Education Act. (Author/KJ)