An overview of the literature reflecting the rapid development of interest in microcomputer use in education since 1978 is followed by an annotated bibliography which lists books, articles, and ERIC documents in nine categories. The first section includes materials of general interest--historical background, guides to using computers in the educational process, books for home hobbyists, cost studies, and others not classifiable elsewhere. Considerations in purchasing computers for both small- and large-scale investments are emphasized in the section on hardware. The software section lists publications which analyze sources, problems, evaluation criteria, and computer review access needs. Varied educational applications are grouped together, while library projects, collection building and access, community teaching, and online systems are topics included under the library applications heading. The alternative sites section includes publications describing computer uses in museums, learning parks, summer camps, prisons, hospitals, parks, and community centers. A section on games and toys focuses on electronic learning aids, video games, and classroom computer simulations. Computer literacy and future prospects are the final topics. An author index and list of journals (with addresses) complete the bibliography. (LMM)