This interim report re-examines data on instrument suitability, comparability of groups, and adequacy of sample size in Year III of the process evaluation of Project Developmental Continuity (PDC) and offers preliminary recommendations concerning the feasibility of continuing the impact study. PDC is a Head Start demonstration program aimed at providing educational and developmental continuity between children's Head Start and primary school experiences. Chapter I presents a general overview of the PDC evaluation. Chapter II describes data collection and data analysis procedures and discusses issues pertaining to validity and reliability of the evaluation measures. Chapter III presents findings in the form of tabulations of characteristics of the samples and of the evaluation instruments and assessments of sample size and attrition rate for the groups in each site. Chapter IV summarizes findings on group comparability and adequacy of the samples and instruments and considers prospects for continuing the Impact Study in the light of these findings. Appendices include descriptions of the measures in the fall battery, forms for weekly tester monitoring, commentary on scoring specific scales, and 5 additional sets of forms for data collection and analysis. (Author/CM)