This report is a preliminary description of a prototype of a second generation version of the PLATO IV (Programmed Logic for Automated Teaching Operations) student terminal. Development of a new terminal has been pursued with two objectives: to generate a more economic version of the PLATO IV terminal, and to expand capacities and performance of student terminals. The terminal design is a miniature computer system containing all the standard features of large computer systems including a processing unit, memory, and an input-output structure. This miniature computer system performs as a PLATO terminal by attaching a plasma display panel to the terminal. The computer is programable and can execute programs locally. A library of programs and a set of self-diagnostic routines to be used to maintain the terminal are also being developed. (CH)