This study investigated initial placements, current placements, and stability of placements for 1,646 graduates of special education preschool programs for 3- and 4-year-olds with developmental disabilities from 61 New Mexico school districts. Subjects graduated in four waves from 1986-87 through 1989-90. Major findings were that 10 percent of the graduates were initially placed in regular education, 40 percent in regular education with support, and 43 percent in self-contained classrooms. Current placements indicated slight shifts to 15 percent in regular education, 33 percent in regular education with support, and 53 percent in self-contained classrooms. Overall, the stability rate was 90 percent. Six recommendations are made, including: (1) increase the number of placements in regular education or regular education with support; (2) increase the number of mainstreamed or integrated preschool settings; (3) place students in regular education with support in cases of doubt; (4) "red-flag" files of children placed in special education for "1 more year"; (5) initiate a "tracking system" across New Mexico districts; and (6) pursue funding needed to continue the preschool longitudinal study. Includes nine references. (Author/DB)