Drawing on papers presented at the rural education seminar, "Ensuring Excellence in Education for Rural America," and other sources, the report consists of an overview, examples of excellence, barriers to excellence, areas of continuing need, and appendices dealing with the conference. Highlights from the executive summary include: approximately one-third of the nation's elementary and secondary public school students attend schools in small towns and rural areas; two-thirds of the nation's school districts enroll fewer than 2,500 students; 17 states are predominantly rural; rural school districts average about 20% less spending per pupil than metropolitan districts and have fewer extended services, such as vocational education and preschool programs; and polls show that rural people are generally pleased with their schools. The most important characteristic noted for rural schools, however, is their differences from each other. While there are many strengths stressed for rural education, priorities proposed for rural schools would include: adequately trained teachers and administrators; opportunities to develop rurally relevant curricula; assessment of instructional needs of rural students; long-range planning; sensitivity to the "rural situation" in financing and mandates by state and national officials; and careful examination of the impact of decreased federal funding in rural areas. (BRR)