This study examined the benefit of using a visual telecommunication system for Sweden's children and adults with mild to moderate mental retardation and speech difficulties. The Panasonic Image Communication Unit connects to standard modular telephones and includes a camera and monitor for the transfer of pictures. Units were placed in eight subjects' homes; day-activity centers; and the homes of friends, relatives, and support families. Results after 5 months indicated that four of the five adult users and two of the three child users (ages 6 to 12) increased their use of the telephone during the course of the project and attained a functional use of the system. It is concluded that the still picture telephone can contribute to increasing the possibilities for social contacts. This is based on the project findings that still picture telephoning gives both visual and auditory information, the frequency of usage increased over the course of the project, the motivation increased, telephoning became more independent, initiative to use the telephone increased, and the pictures became more relevant and functional. Appendices provide background information given to program participants and various recordkeeping forms. (27 references) (JDD)