This report tracks the 1997-98 state and local progress in implementing Maryland Education That Is Multicultural (ETM) Regulations adopted by the Maryland State Board of Education (MSDE) in 1994. Section 1 of the report introduces ETM, a process that promotes the valuing and appreciation of diversity, including factors such as region, race, ethnicity, national origin, socioeconomic status, gender, and disability. It also describes implementation of the regulation, noting responsibilities of the MSDE and local school systems. Section 2 presents background information on definitions and perspectives related to multicultural education and reflected in ETM (definitions and approaches, social context, cultural diversity and school, academic achievement, and assessment). Section 3 briefly describes documents related to implementation of ETM (ETM regulations, ETM Course Guidelines, ETM Instructional Resource and Materials Evaluation Guidelines, ETM 5-Year Local School System Plan Evaluation Protocols, ETM Local School System Annual Progress Report, and ETM Individual School Protocols). Section 4 focuses on ETM implementation. A discussion of statewide ETM progress examines ETM advisory council activities and MSDE implementation of regulations; a discussion of local school system progress describes implementation of ETM 5-year plan and progress summaries from Maryland school districts. (SM)