The utility of computer based on-line retrieval of material from the ERIC document files was tested by members of the ERIC Clearinghouse on Educational Media and Technology at Stanford University and by the Region IX office of the U.S. Office of Education in San Francisco. The DIALOG retrieval system developed by the Information Sciences Group of the Lockheed Palo Alto Research Laboratory was the on-line system tested. More than 800 searches were conducted and over 51,000 citations and abstracts were printed in the 1-year period covered by this report. A short discussion of the implementation of the system, as well as summaries of the evaluations that were conducted at Stanford and San Francisco are included. The system was used principally for retrospective retrieval and for generation of special bibliographies. Users were most impressed by the speed and "horizon widening" effects of the system, and nearly all were satisfied with search results. Based on a predictable potential demand with a low of 10,000 and a high of 125,000 requests per year, a general discussion of benefits which would accrue from the routine use of DIALOG concludes the report. (MT)