Presented are the final reports of a two-part project designed to measure the effect of an intensive inpatient developmental program on 40 young multi-handicapped children (18-36 months old) and their parents. Part 1 describes a system developed and tested to record and analyze changes in child functioning. Reported are results from teacher-written logs and videotaped diagnostic sessions on the following dimensions: interaction with materials, awareness of the environment, social responsiveness, expressive communications, affect, gross motor and fine motor ability. (A coding manual is appended.) Among findings cited are that mental age was more meaningful than chronological age as a descriptor of status, and that age levels assigned to competent work with educational materials yielded the most relevant information for developmental assessment/prescription. Part 2 describes an analysis of open-ended, comparatively non-structured weekly interview sessions with parents of 20 of the children in Part 1. Results of complementary quantitative analyses are said to indicate that most parents were found to shift from an original emphasis on physical and language disabilities to consideration of other developmental aspects. Parental satisfaction with programmatic intent and implementation is documented, as well as the change in parents from a passive and "recipient" role to one of greater participation. It is noted that socioeconomic status and type and degree of disability of their children were not found to be related to parents' attitudes toward the program. (Author/CL)