A study, funded by the Australian government, explored differences in the literacy practices of schools, families, and community groups. In particular, the study examined the matches and mismatches between the discourse practices of home and school, and the impact that any differences had on students' school success. Also observed were innovative attempts to create school curricula and learning environments that meet the needs of specific students and which facilitate effective partnerships among home, school, and community. Case studies were conducted in four schools (one secondary, three elementary) which had been identified as adopting innovative strategies to respond to differences in language and literacy practices in their communities; all the schools had significant populations of language minority children. Detailed observation and discourse analysis of the literacy practices of 35 case study children as they moved about at home, school, and community contexts was carried out. Transcripts (n=13) of discourse analysis illustrate the research results. One important finding was that children from "minority" language and cultural backgrounds are not the only ones who may find school literacy less than empowering. While many children from mainstream culture may be academically successful, their learning is nevertheless constrained by mismatches between literacy at home and at school. It is clear from this study that families and schools differ markedly in their literacy practices and values and significant differences exist among families in the way they define and use literacy. (Contains 43 references.) (NKA)