This paper describes how researchers at SRI International's Center for Technology and Learning designed and used an observation tool as part of its evaluation of a local Technology Innovation Challenge Grant program called Challenge 2000: Multimedia Project. The paper aims to present both the process and the tool that researchers, program designers, and teacher-researchers might adapt to similar programs and initiatives. Methods are discussed for observing changes in classroom processes in project-based classrooms using multimedia technology. The design of the observation tool is discussed and findings are presented about the differences in classroom processes between Multimedia Project classrooms and comparison classrooms. Findings indicated that Multimedia Project classrooms were more likely to be learner-centered and to engage students in long-term, complex assignments. Overall, the results suggest that the project is meeting its objective of transforming classroom processes so that they become more student-centered, especially while students are engaged in project-based learning using multimedia. (Contains 21 references.) (AEF)