This report presents a detailed rationale and a plan for a study of the effectiveness of materials and procedures for meeting the educational needs of individual children in compensatory education programs. An introductory section addresses an overview of the policy questions to which the results of the individualized instruction study will be relevant, an outline of the distinguishing features of the proposed approach, and a discussion of alternative designs that will serve to further clarify the design that is recommended. Other sections include foci on defining and assessing program and support variables, assessing outcomes, sampling and securing the cooperation of schools, collecting data, reducing and analyzing data, project organization, staffing, schedule and references. Appendices include in-class interviewing, analyzing curricula, behavioral analysis of curricula, videotaping, and test reviews. The outcome of primary interest in this study is stated to be achievement in reading and mathematics, other outcomes also having been considered for inclusion. The assessment section describes the outcome measure that is recommended for assessing student achievement and the rationale for its selection. In addition, measurement of program effects on noncognitive student outcomes and on the total classroom environment is discussed. (Author/AM)