This study investigated the effectiveness of an observational technique developed to study characteristics of the Individually Prescribed Instruction (IPI) system and the extent to which IPI adapts to individual student differences. Subjects for the study were students from a second grade IPI classroom of an inner-city public elementary school. The results of the study have been analyzed in terms of the following four basic topics: (1) the distribution of student time spent in different types of activities, (2) the sequential effects of the different activities, (3) frequency and duration of activities, and (4) qualitative aspects of the activities. (Author)