A study explored some of the ways that the members of a medical educational institution make sense out of the radical pedagogical innovation taking place in their school. Interviews and focus groups were conducted with members at "MWCOM" (a pseudonym), then data were analyzed according to three primary themes which revolve around how organizational members make sense of the problem-based learning (PBL) program and the PBL students. First, how organizational members expressed their view that those enrolled in the PBL curriculum were afforded more organizational resources was explored. Then, organizational members' perceptions that the PBL students enjoyed a more positive quality of life than did their traditionally educated counterparts was examined. Finally, how organizational members related their perceptions that the PBL students were undergoing a positive role socialization with respect to their chosen profession was focused on. An aim of the study is to enrich understanding of the establishment of innovation within one of the most traditional educational institutions--medical education organizations. This study is situated squarely within the context of medical education, an institution which has few rivals in the system of social discourse which privileges medical knowledge above most other forms of knowledge. It is hoped that by providing a "real life," day-to-day picture of the exigencies inherent in accomplishing the PBL diffusion, this study can be of use to educators who wish to introduce innovative programs into educational systems with similar concerns. (Contains 34 references. An appendix gives the location and describes the population, support staff, faculty, and administration of "MWCOM.") (NKA)