This paper deals with the need to redefine and comprehensively restructure teacher education programs, emphasizing what teachers can best learn, in what contexts, and at what stages of their cognitive and social development as professionals. The report is organized into 5 parts: Part 1 concentrates on what schools should do that they are not doing, or not doing well enough, and why the education of teachers is essential to improve what and how children learn. Part 2 examines several trends in school reform. Part 3 provides an overview of the fundamental problems with current goals and roles of schools of education. Part 4 identifies and evaluates current proposals for improving conventional approaches to teacher preparation. Part 5 proposes a set of policies and practices for educating teachers which could increase the effectiveness of teachers as well as their capacity and motivation to continually increase their effectiveness. Conclusions reached in the report are based on an analysis of several hundred empirical research studies. Appendixes provide a scenario of what the teacher preparation internship in Pennsylvania might look like and a proposed experimental program for supporting the professional development of beginning teachers and their mentors. (Contains approximately 150 references.) (LL)