This paper examines, through historical analysis, the values and beliefs underpinning the early theories and applications of problem-based learning and contrasts these with current theory and practice. This study focuses on the first three decades of the twentieth century, because, during this time period, the use of projects in education became popular, and because this was a period of time when ideas from business and industry began to be used in educational contexts. This analysis puts current practice in a more meaningful context and suggests new options and interpretations for the future application of problem-based learning and teaching strategies. Topics addressed include: (1) the historical backdrop to the use of projects in education, focusing on the work of E.L. Thorndike and John Dewey; (2) what a project is not; (3) early project use in education; (4) various definitions of the project in education, including two basic categories (a manual activity aimed at a pre-specified result, or the basis to establish the entire curriculum); (5) agreements on definition; and (6) current examples of problem-based learning. (MES)