This study of the first year of an inter-organizational diffusion effort by a national educational laboratory, a state department of education, and nine local school districts focuses on the implementation phase within the Research, Development and Diffusion (RD and D) strategy of an aesthetic education program which uses the arts as the discipline base for selection of curriculum. The paper is organized as follows: Section I summarizes the theoretical RD and D strategy for educational change and analyzes the significant dimensions as they occurred in the Pennsylvania diffusion tactics. Section II describes and develops hypotheses in three diffusion processes: rate of installation, rate of implementation, and rate of adoption by other sites and districts. Section III summarizes the mojor findings and suggests modifications of the theoretical RD and D diffusion strategies for program development. (Author/SHM)