Modern school research in Sweden has shown that the old selective school has been slowly transformed into an elective school, which in many ways resembles the old selective school with its parallel education systems. It is known that social background and a number of other variables (sex, nationality, type of class, etc.) have a crucial bearing on school achievement and educational choice, but less is known about the mechanisms responsible for grading. The project described in this newsletter investigated demands that teaching makes on Swedish students, how they meet these demands, and the qualifications that result. The progress of a number of students entering various programs, termed "lines," in the upper secondary schools were followed. Students in a consumer line, a workshop line, a liberal arts line, and a natural science line were selected and interviewed in fall of 1985, and these interviews were supplemented by teacher interviews and classroom and school-environment observations. Follow-up interviews were held in spring 1987 with students in the consumer line and the workshop line. (Students in the other two lines will be interviewed when they leave school in 1988.) Tentative results are reported, and subsequent research objectives are listed. (TE)