Project IMPACT is a comprehensive advanced development project designed to produce an effective and economical computer-administered instruction (CAI) system for the Army. This report describes the concepts, approach, and implementation of the Project IMPACT text-handling subsystem. The computer-based facilities for preparing, storing, and retrieving the content of CAI courses of instruction are described. Computer software tools, called EDITOR and DIRECTOR, are described in terms of their use by course authors. EDITOR enables authors to prepare the content of instruction easily and rapidly, while DIRECTOR manages the instruction presented to students by the computer. (Author/JK)