At the end of September, 1978, 37,000 low-income youths in seventeen competitively selected communities across the country were enrolled in Youth Incentive Entitlement Pilot Projects which guaranteed them a part-time job during the school year and a full-time job during summer months on the condition that they remain in, or return to, a secondary school or enroll in an equivalency education program. A study was conducted to assess the implementation of this demonstration program from March through September of 1978 and to identify the early program costs from that period. It was found that the unique operation requirements of the Entitlement design, together with the conditions under which the demonstration was planned and fielded, acted to produce a set of difficult management challenges for participating prime sponsors. Those features that most closely resembled existing manpower programs were implemented first and most successfully, while newer and more difficult features of the program--for example, the monitoring of school attendance and performance--were left to be tackled at a later date. Particular challenges posed by the Entitlement design were identified in the following areas: the uniqueness of the job guarantee; the requirements on the prime sponsor; the need for an information system; and the rapid start-up. The major areas of strengths and weaknesses during implementation were summarized as they related to the following activities: recruiting and enrolling eligible youths; developing jobs and assigning youths; ensuring the participation and cooperation of educational institutions; and early program costs. (BM)