This study addressed policy problems encountered during the process of identifying and remediating pupils with learning disabilities (LD) in New York State. An ethnographic approach was used in the detailed analysis of policy as it affected 13 elementary LD students (from urban, suburban, and rural schools), their parents, and service providers. Policy issues addressed include: the definition of learning disabilities; timely evaluation and intervention; evaluation content; labeling; free and appropriate education; alternative testing and instruction; and the need for additional services. Analysis of results led to recommendations to: (1) clarify the state definition of LD; (2) provide for early structured intervention services outside of special education; (3) relate evaluation specifically to special education program planning; (4) encourage the integration of the special and regular education programs in school districts; (5) promote positive home-school cooperation in educating LD pupils; and (6) create financial incentives for preventive and declassification services. An appendix presents the questions used in adult interviews. (Contains 15 references.) (DB)