Knowing what different kinds of computer equipment can do is the first step in choosing the computer that is right for you. This digest describes a developmental progression of computer capabilities. First the basic three software programs (word processing, spreadsheets, and database programs) are discussed using examples. Next, an explanation of more advanced uses of the computer is given, including: graphics or drawing, multi-tasking or performing more than one job at a time, and telecommunications and e-mail. Finally, technological applications in education are discussed which include such topics as interactive video, hypertext and hypermedia, virtual reality, on-line multimedia libraries, and distance learning. Suggested resources for parents are included. (MKR)