In 1981, when Chapter 1 replaced Elementary Secondary Education Act (ESEA) Title I and with the advent of the effective schools movement, the Hawaii state administrators of Chapter 1 made a long term commitment to program improvement, especially in the area of instruction and quality delivery of services to the target students. In this program improvement effort, program managers identified state education agency monitoring/technical assistance as one of the means to encourage systematic program improvement at the local level. The project was committed to develop: (1) a system for observing and analyzing teaching/learning behaviors for effectiveness; (2) a handbook containing a procedural guide for state monitoring/technical assistance, and (3) computerization of state education agency operations. This is a report on the system for monitoring classroom activities. It contains a summary and evaluation of project activities with recommendations for improvement. (Author/BW)