Reported were data from the first year of a 2-year project in which four elementary schools implemented a new organizational pattern that stressed individualized instruction and maintenance of mild to moderately handicapped children in regular classrooms. Schools were selected on the basis of the following criteria: school population of 600 to 900 students; existing psychological services and speech and hearing services; availability of space; and willingness of teachers and principals to implement the project model. Teachers selected to participate in the study were trained over a period of 30 weeks. Data from questionnaires were found to show an overall acceptance of the experimental design by principals, regular education teachers, and special education teachers, and to indicate that personnel in the experimental schools perceived their roles much differently than controls. It was reported that handicapped children in the experimental schools received more services than their controls, and that more handicapped pupils were served under the new design. Pre- and post-test data indicated that experimental groups scored significantly better than the control population on comprehension tests, although there were no significant differences between groups on vocabulary test scores. (GW)