Intended for use by teachers, administrators, and boards of education in Tennessee as they make decisions about the instructional and managerial uses of microcomputers in education, this handbook is structured around several main topics: (1) basic microcomputer information, including microcomputer components and peripheral equipment, computer literacy, and major computer languages; (2) instructional applications, including advantages, computer-assisted instruction, computer-managed instruction, curriculum considerations, further applications, and misapplications; (3) administrative uses, including database management systems, word processing, electronic spreadsheets, and communications; (4) microcomputer hardware selection, including needs and objectives, and criteria for selection; and (5) microcomputer software, including systems and applications, sources of software, software selection and evaluation, and software/hardware consideration criteria. A software evaluation form is provided, and appended materials include a glossary; lists of microcomputer periodicals; software evaluation sources and software user groups; and a checklist for software selection and evaluation. (LMM)