The Regional Educational Laboratory (REL) program was established more than 30 years ago, and 10 RELs have been working at school sites in all 50 states, the District of Columbia, and U.S. territories since 1985. The labs work on regional and national education issues, applying what they learn from their own and others' research and development projects to spur meaningful school change. The stories and tables in this report present an overview of the challenges the RELs are facing during the 2001-2005 contract as well as their strategies for addressing these challenges. Across the United States the labs are partnering with schools and districts to build capacity for school improvement and high student achievement. Because this was the first year of a new contract, many of the stories in the report describe early phases of research and development project. Other stories draw on work begin in a previous contract period that laid a foundation for additional research and development to be carried out through the contract period. Projects described have taken place at: (1) AEL and the AEL Higher Education Co-Venture; (2) the Northeast and Islands Regional Educational Laboratory at Brown University; (3) the Laboratory for Student Success; (4) Mid-continent Research for Education and Learning; (5) the North Central Regional Educational Laboratory; (6) the Northwest Regional Educational Laboratory; (7) Pacific Resources for Education and Learning; (8) the Southwest Educational Development Laboratory; (9) the Regional Education Laboratory for the Southeast (SERVE); (10) WestEd. Also described are the way the RELs network for success and the national leadership areas served by each of the RELs. (SLD)