The Austin Independent School District's Research and Evaluation Office presents practical information concerning observational research. This paper focuses on five topics: (1) what makes a good observer (setting the ground rules, training observers in details, and practice, i.e., involving the observers in planning and providing rigorous training); (2) frequent teacher reactions encountered (hostility, apprehension, apathy) and suggestions for dealing with the reactions; (3) frequent student reactions encountered (curiosity, showing-off) and ways to deal with the situations; (4) school facilities or the lack of them and counteracting these problems by planning ahead; and (5) constructing observation instruments designed to answer specific questions, tailored to the age level of the student, and easy to use. A bibliography containing a number of reports dealing with observational findings is included. (PN)