Information is presented for individuals who are taking the second and third courses of the Computer Assisted Remedial Education (CARE) sequence. The entire CARE package is designed to help teachers learn to assist students in their classes who have learning problems. CARE 2/3, the courses for which this handbook was created, provide instruction in the use of diagnostic teaching with preshcoolers and primary graders. The handbook provides summaries of the computer-assisted instructional on-line material, and charts, illustrations, references, tables and other materials essential for the completion of the courses. The major sections of the handbook parallel those of the course itself and include: 1) child development; 2) identifying relevant characteristics of children; 3) the specification of goals and objectives; 4) instructional procedures; 5) the selection and retrieval of instructional procedures and materials; 6) the application of the diagnostic teaching model; 7) resources; and 8) day care. (PB)