This report discusses key problem areas in the use of computer technology in education and describes current educational practices that appear to address the needs of urban educators. The problem areas, which were identified by the Technological Study Group of the National Institute of Education's Urban Superintendents' Network, concern: (1) the provision of effective computer literacy programs; (2) linkages between technology and employment skills training; (3) the avoidance of obsolescence of computer hardware and software; and (4) the creation of networks, or connections, among different technological tools for instructional and/or administrative purposes. For each problem area, relevant issues are discussed and promising practices or projects are briefly described. Names and addresses of contact persons for some of the projects are provided. The report also considers key policy making areas for urban districts that intend to employ computer technology in education. Appended to the report are a directory of members of the Technology Study Group, a partially annotated bibliography of references and instructional materials, and a list of other information sources. (MJL)