This report summarizes Project IMPACT activities in fiscal year 1968. The goal of the project is to develop a computer-assisted instruction (CAI) training system in the COBOL language for the U.S. Army. Following an introduction, the report explains the instructional decision model which is used with an interactive computer system. The hardware system for Project IMPACT is then explained briefly. COBOL course development is described in terms of training objectives and instructional content. Software developments such as IMPACT CAI LANGUAGE (ICAIL) and future coherent programing are explained in the last chapter. Appendixes include a summary of staff development, a checklist for man-hour computation, a flow diagram from the preliminary COBOL course, COBOL course criterion tests, and an explanation of the IMPACT list processor. (CH)