As a result of a 1992 West Virginia Department of Education plan to fully include students with disabilities, this project examined the effects of school funding practices and personnel practices such as certification, training, and teaching practices on the inclusion of students with disabilities in regular education classrooms. Information was gathered through national surveys of teachers and administrators and structured telephone interviews. Analysis of survey responses (N=185, of which 27 were from West Virginia) on special education funding formulas and financial incentives led to identification of six model states (Arkansas, Indiana, Maryland, Massachusetts, Pennsylvania, and Wisconsin), and interviews were conducted with five individuals in each state. Respondents frequently identified the following as barriers to inclusion: ineffective training procedures, beliefs and attitudes, rigid or ineffective policies and system processes, lack of teacher support, lack of funding and resources, poor leadership strategies, and poor communication. In-depth interviews identified the following key strategies for successful inclusion: (1) promote positive values and beliefs; (2) develop a philosophy and plan for inclusion; (3) provide training for inclusion; (4) provide sufficient support to general education classrooms; (5) utilize collaborative teaching strategies; and (6) establish site-based management teams. Research findings for funding practices and personnel practices are detailed for each question on the survey. Abstracts of state funding formulas and copies of survey and interview forms are appended. (Contains 19 references.) (DB)