This report summarizes and assesses Project REAL (Return to Employment and Learning), which attempted to attack the high rate of youth crime by focusing on youth offenders who, because they committed repeated serious offenses, were likely to become career criminals. Following a brief introduction, the report describes typical Project REAL clients as males, with a mean age of 16.9, who were members of minority groups, lived in less than optimal residential circumstances, were poorly educated, and had limited employment histories. Next, the program's initial objectives are outlined and findings of an evaluation of the first year are summarized. The program's emphasis was on reducing recidivism, a stress imposed by Project REAL's funding sources. The report then describes, consecutively: changes in the program's staff and the development of a successful computer-assisted instructional component; procedures for referral, testing, and intake; changes in the funding sources; and job search services, which included instruction, developing and placing participants, and referring participants to alternative educational or vocational programs. The remainder of the report discusses Project REAL as an opportunity to achieve an important organizational goal: to initiate and implement an effective demonstration project that improves the economic chances of poor people and then to deinstitutionalize the project within the public agency. While the latter step was not realized, it is argued that the process illustrates difficulties inherent in negotiations between private, nonprofit and public agencies, formal and informal communication and networks, and influence and decision-making. In conclusion, the implications of Project REAL's general success for other programs is considered. (KH)