As part of its contract to develop a framework for continuous school improvement in its four-state region (Kentucky, Tennessee, Virginia, and West Virginia), Appalachia Educational Laboratory staff designed the Quest project. Based upon principles of inquiry, collaboration, and action research, Quest supports and investigates ongoing school improvement efforts through rallies, summer symposia, a Scholars program, visits to participating schools, communication via listserv and mailings, and the creation of a Quest network of schools. This report describes and assesses the first Scholars colloquium, held July 16-18, 1998, in Charleston, West Virginia. Eleven Quest members participated, including teachers, administrators, and others from elementary, middle, and high schools. Evaluation data were generated by evaluator and intern participant observation, unstructured interviews, daily feedback forms, and Scholar assessment of the Quest project as a whole. Many colloquium goals were met, especially those concerned with collaboration and connection among participants. Scholars and Quest staff began to plan network activities and products. Many indicated their interest in coauthoring articles and conference presentations with project staff. Project recommendations included ensuring that contributions of noneducators were not devalued, responding to Scholars' suggestions for improving Quest, confirming that participants understand the purposes and procedures for project activities, and using Scholars' conceptualizations of Quest to enhance project development. Appendices present the Quest framework for continuous improvement, daily feedback forms, the final evaluation form, and the evaluation standards checklist. Contains 22 references. (Author/TD)