One of four reports designed to assess the current state of new technologies, the document reviews the status of microcomputers in regular and special education now and for the next five years. Briefly discussed are components, software, and prices of microcomputers. Next addressed are general educational usage for instructional and administrative purposes within the past 15 years, sales trends of manufacturers, and needs local education agencies (LEAs) should consider when adopting a microcomputer system. The difference between Computer Assisted Instruction (CAI) and Computer Managed Instruction (CMI) in special education (SE) is explained, followed by discussion of the cost/benefit of these applications for classroom and administrative functions. Discussed also are software trends for CAI (such as increase of interest by medium-sized publishers in adapting regular education courseware for SE) and for CMI (such as availability of 30 systems with five components including "procedural safeguards tracking") as well as computer support applications. Among the factors described as affecting the use of microcomputers are advances in hardware technology, increased development in software, and identification of LEA needs such as staff training in specific applications. A short summary synthesizes the content and makes projections including the estimate that by 1985, 500,000 microcomputers will be used at the LEA level as contrasted with 150,000 microcomputers in the public schools in 1982. (MC)