This document reports the second year of Project IMPACT (Innovation and Motivation in Polk County for the Advancement of Creative Teaching), an ESEA Title III inservice program concerned with the need to "humanize" the process of education and the need to develop innovative teaching methods which will aid productive thinking and minimize the old reliance on rote learning. Included are tabulation of the workshops, conferences, and meetings conducted since August 1968 to disseminate information and to initiate changes in attitude among the educators of Iowa; selected anecdotes and quotations representing the reactions of IMPACT teachers and students to the project; and review of the project's research regarding changes in teacher classroom behavior (particularly the thinking processes occurring in the classroom) and investigations concerning attitudes and self-concept of teachers and their students. Appended are rationale for the self-concept studies and the full project evaluation study, a report on the development and application of a criterion measure by which creativity in classrooms is to be evaluated, including description of the classroom behavior analysis using the Aschner-Gallagher verbal interaction technique and discussion of the research results. Included also is a copy of the published unofficial account of IMPACT'S development during its first year (before August 1968). (JS)