This report describes a study which examined trends and future prospects in the placement and provision of services to children with special education needs (SEN) in Scotland, United Kingdom, in the context of recent policy changes toward increased integration, increased parental choice, and devolved school management. The study involved interviews with officers in 12 local education authorities and case studies of 32 pupils with a range of SEN in 8 mainstream and 8 special schools in 2 education authorities. The report addresses the following aspects of the study: (1) an introductory overview; (2) the nature of educational services in mainstream and special schools; (3) perceptions of the impact of policy changes on patterns of services; (4) placements of students with SEN; (5) costs of SEN services in mainstream and special schools; (6) factors influencing the placement of children with SEN; (7) achievement of pupils in mainstream and special settings; (8) training needs of teachers and other staff; (9) services for students with SEN; and (10) implications of the findings. Specific recommendations are offered to the Scottish Office Education Department, local education authorities, and schools. Appendices include interview schedules, a description of the education authorities involved, raw statistical data, and profiles of the case study pupils. (Contains 57 references.) (DB)