The Process Analysis of Non-Grading (PANG) project evaluates the planned experiments with non-graded upper grades in communities with few pupils in Sweden. The main objectives is an analysis of the possibilities and difficulties that will appear through the new frame situation concerning realization of achievement goals and social goals. Six school districts in the middle and northern parts of Sweden are included in the 1973-74 part of the investigation. The main components of the investigation include the class, the spare time activities, the friends, the home, and the community. The data are collected by means of tests and questionnaires from 7th grade students, teachers, and administrators. Follow-up questionnaires are used with the teachers, and data about the parents are collected through interviews. Classroom observations are done at random on some occasions during the session. The project is planned to continue for 4 years, in order to follow the first 2 groups of pupils through the upper grades; but the reporting will be done continuously so that necessary modifications can be made as needed. (PS)