This is the third report from the evaluation of the Multicultural Education Program in Pittsburgh (Pennsylvania), a major effort to address racial and ethnic diversity in a middle school. Section 1 of the report provides background on the multicultural education movement and the aims of the Pittsburgh program. Section 2 describes the status of the program's challenges, presenting information on program implementation based on information from students, staff, and parents who are participants in the demonstration program. The third section describes the levels of implementation achieved and the implications of development to date. Seven program components have been developed to address the challenges of multicultural education: (1) conflict resolution; (2) cultural awareness; (3) learning and teaching styles; (4) cooperative learning; (5) multicultural curriculum; (6) parent and community involvement; and (7) elimination of tracking. The evaluation found mixed results at the Prospect Center, the school at which the program was implemented, but substantial progress was made at the district level. Multicultural education continues to be a priority for the Pittsburgh Public Schools, but the responsibility for change resides mainly in the individual schools. An appendix contains a policy statement on multicultural education, and student, staff, and parent surveys. (Contains 13 figures and 32 tables.) (SLD)