The introduction to this report summarizes the council's 1968 activities in reviewing and evaluating PACE (Projects to Advance Creativity in Education), Title III of the Elementary and Secondary Education Act (ESEA). Part 1, "The Past," summarizes the purpose of Title III and the major accomplishments and problems of the first two years. Part 2, "The Present," covers the 1-year transition period after the Congressional decision to turn the program over to the states. Results of questionnaire returns from 920 project directors provide the data for discussion of present project problems, primary factors in approving new projects, attitudes of project directors toward transition to state control and toward federal support, problems and transition, and present evaluation. Part 3,"The Future," focuses on future needs, as expressed by project directors. The final section presents 17 recommendations for strengthening and improving PACE at the federal, state, and local levels. (JS)