This report highlights issues for policymakers and provides guidance to states and localities implementing the Workforce Investment Act of 1998 (WIA) by describing the successes and struggles of five cities implementing the new legislation. It presents WIA's basic framework and discusses its impact on these four major audiences: employment and training providers, job seekers, employers, and the overall workforce development system. First, it addresses the impact on employment and training providers, including certification of eligible providers, continued certification and emerging issues, performance measures, individual training accounts and emerging issues, impact on participant/job seeker and emerging issues, tiered services, and customer choice. Second, the report discusses the impact on employers. Third, it reports on the workforce development system, including leadership, new organizational structures (Workforce Investment Boards, One-Stop Center delivery systems, One-Stop Center staffing, mandated partners and memoranda of understanding), performance measures, and funding. The report concludes with implications for the future based on the sites' experiences and identifies these issues to watch as implementation progresses: it takes time; building new relationships; managing partnerships; focusing on the long term; working for employers; who's in charge; allocating sufficient resources; and understanding the customers. (YLB)