The computer revolution was expected to help American schools to teach traditionally unsuccessful students more effectively and to reduce educational inequalities. Research suggests, however, that computer technology has in many ways actually widened the gap in educational opportunity. Nevertheless, this report finds that computers and collaborative learning environments can be used effectively to develop language and literacy skills in students who have difficulty with traditional teaching methods. Inequities in school computer use result from some of the following factors: (1) unequal access to computers in the home; (2) limited access in ethnic and language minority schools; (3) reductionist teaching approaches; and (4) limited access and applicability for female students. Research indicates dramatic linguistic and academic improvement when students are given access to problem solving, word processing, and communications software, especially for use in collaborative tasks. The coupling of the process approach and computer use in group writing instruction encourages purposeful social interaction in the classroom and engenders both spoken and written language enrichment. The integration of computers into the language arts curriculum involves female students in technological literacy. Electronic mail has also developed as an important tool in literacy development. Emphasis is placed on the role of skilled teachers in engaging all students through computers. A list of 12 references is appended. (AF)