The paper describes an observation instrument originally developed as a research tool to assess both the special setting and the regular classroom. The instrument can also be used in determining appropriate placement for students with learning disabilities and for programming the transfer of skills learned in the special setting to the regular classroom. The instrument measures: teacher task statements, student compliance, direction (to the individual or the group) of task statements, response type required by the student, type of task statement, and teacher consequence following student response. After a discussion of the theoretical framework, the observation instrument is detailed, and a pilot study using the instrument to code classroom video tapes is reported. Analysis of pilot study results indicated two areas of difference between special and regular settings--the type of responses. Includes 20 references. (DB)