The resource book is designed to help teachers and other school personnel use arts activities to mainstream handicapped and gifted students into the regular class curriculum. The first section contains guidelines for developing basic processing skills of perception, interpretation, understanding, expression, and evaluation. The second part of the document contains suggestions for activities in language, visual arts, music, drama, and movement. Each activity includes information on objective, procedure, uses, materials, and age group on which it was field tested. The document concludes with an annotated bibliography of approximately 150 references from the ERIC database. (CL)