Summarized are the findings and recommendations of a 2-year study of all major services and service delivery systems in Nevada for persons with mental health disorders, mentally retarded persons, and abusers of alcohol and other drugs. Considered are the following areas of basic service needs: prevention of the mentally handicapping conditions, identification of the mental handicaps, direction to appropriate service providers, special education, treatment for mental health disorders, developmental training and other services to ameliorate the effects of mental retardation, alcohol and drug abuse treatment, medical care, vocational services, residential care, and income assistance. Described is the research strategy which involved taking a comprehensive view of the service system and the population served, estimating the size and service needs of the mentally handicapped population, and analyzing the characteristics of all Nevada service programs for meeting those needs. Considered are the objectives of participants in the service system and dimensions on which to measure progress toward the objectives. Described are problems with the current service systems, and presented are recommendations for resolving those problems, such as the following: allocate special education funds by specific handicap and enforce current standards, establish rehabilitation houses for rural alcohol and drug abusers, provide vocational education for emotionally disturbed youth, and establish health and developmental screening of new school enrollees. The 71 recommendations are presented in tabular form by degree of change needed and by area of basic service need. (IM)