This report is one of a series from a project entitled "Case Studies in Evaluating the Benefits and Costs of Mediated Instruction and Distributed Learning," funded through a Field-Initiated Studies Educational Research Grant. The case study subject is the use of Daedalus courseware, an interactive program that allows all participants to read and comment upon the work of others, to teach basic English writing at Baruch College in the City University of New York system. In spring 1997, Daedalus was used for the first time in a course designed for students who fail to demonstrate minimal proficiency in reading and writing (75% of the 16 students in the Daedalus section passed the CUNY Writing Assessment Test, compared to 53% of the 15 students in the control section). The instructor's assessment of the exit exams indicated that the students in the Daedalus section wrote longer, higher quality essays. The report includes the following sections: (1) "Summary, Findings, and Conclusions"; (2) "Background and Context"; (3) "Benefits of Daedalus: Student Learning Outcomes, Student Persistence, and Institutional Renewal"; and (4) "Cost Estimates." Also included are a table of contents and "Appendix A: Abstract on Teaching Writing with Computers," using example of InterChange exercise. (DLS)