This report is the Proceedings of the third conference of its type. Included are 23 of the 25 papers presented at the conference, discussion of these papers by invited discussants, and symposium papers by a group of leaders in adaptive testing and latent trait test theory research and applications. The papers are organized into the following topical sessions: (1) Adaptive Testing Strategies for Measuring Ability; (2) Adaptive Testing in Germany; (3) Adaptive Mastery Testing; (4) Estimating Response Functions without Assuming a Parametric Model; (5) Item Linking and Equating; (6) Latent Trait Models which Incorporate Response Time as well as Response Appropriateness; (7) Person-Item Interaction; (8) Use of Latent Trait Models with Estimated Item Parameters; and (9) Longitudinal Measurement with Latent Trait Models. A symposium and discussion on the State of the Art of Adaptive Testing and Latent Trait Test Theory included presentations by Gerhard Fischer, Frederic M. Lord, James Lumsden, and David J. Weiss. (Author/RL)