This report describes a program which utilized cooperative learning activities to help eighth grade students in physical education classes at one urban Illinois school develop their interpersonal skills and reduce the frequency of inappropriate behavioral choices. The problem of inappropriate behavioral choices in the physical education classroom was documented by the number of student disciplinary referrals, the school climate surveys from students, and teacher observations. Analysis of probable cause data indicated that students demonstrated a lack of decision-making skills resulting in a lack of class preparation, tardiness, and disruptive behavior. Solutions strategies suggested by the literature, combined with an analysis of the problem setting, resulted in two major categories of intervention: a series of co-operative learning activities to address interpersonal skill development, and creation of physical education portfolios to increase student goal setting and decision making skills. The data indicated that the intervention was partially successful. Targeted students advanced their interpersonal skill development as evidenced in the reduction of the frequency of inappropriate behavioral choices in dressing, tardiness and disruptive behavior. Appendices include the student surveys; descriptions of interpersonal skills exercises; and cooperative lesson plans. (Contains 31 references.) (Author/ND)