The paper discusses differences in classroom process and environment in two rural schools and relates these differences to attendant differences in student achievement and peer ratings. Relationships between pupil creativity, achievement, personality, peer ratings and ability in classes are described using Flanders' Interaction Analysis; comparing black students in all-black schools to white students in all-white schools. Subjects were students and teachers in third through sixth grade in two schools, one white and one black, in the same rural county in Georgia. Median family incomes were compared. The findings, although incomplete due to poor student attendance, show that black students are lower achievers than white students and are two and a half years behind grade placement while white students are one half year ahead on grade placement. White teachers and pupils function at higher cognitive levels than black pupils and teachers. Teacher and student verbal behavior in questioning and answering was tabulated by thought level and classroom interaction patterns. In general, classroom climate, peer concepts, reading achievement and thought level used are related when comparisons are made between black and white students. (Author/MC)