The document presents the final report of a project to develop and validate a three-phase system of individualized criterion-referenced assessment instruments to provide professional decision makers with reliable information regarding a mentally handicapped person's skill level at different stages of normalization training. An overview of deinstitutionalization of the mentally handicapped is provided, along with a position statement on assessment in mental retardation and background information for the project. The bulk of the report describes the instruments, which include a prescreening instrument to identify the most appropriate candidates for movement to more intensive training environments, post-entry monitoring instruments to assess individual behavior related to levels in independent living alternatives to monitor those areas in which direct training will prepare the individual to move to a less restrictive community program, and a skill checklist to evaluate level of functioning related directly to a specific placement in a community living program. Each instrument is discussed in terms of such aspects as development, validity, reliability, and format. It is concluded that the profiles provide a reliable and valid information system for use in planning and implementing services for the mentally handicapped along the continuum from restrictive to less restrictive living alternatives. (DLS)