An observational schedule to assess child behavior in natural settings was devised, using a system of precoding of types of behavior. The schedule was designed to discover the opportunities the adult has provided for the child and the personal setting the child has selected from those available. Two types of codes are used. The first-level coding records three aspects of the child's behavior every 15 seconds: the mode, direction of attention and continuity, as well as adult input, if occurring. In the second-level coding, these 15-second codings are grouped into larger units called activity segments to describe the larger activity system which provides an organizing framework for the child's behavior. A schedule also was developed for describing the characteristics of the physical space in day care centers and in homes. Reliability for each segment of both schedules is discussed. The form used for coding observations is provided. (For related document, see PS006 425.) (KM)