The New Directions Community School, Inc., developed this manual on the basis of their experiences with planning, establishing, and running a free school. It is designed to provide others who are interested in setting up free schools with information which will help them solve or avoid some of the technical problems involved. A general statement on the beginning and current state of New Directions is offered in an introductory section, while the rest of the booklet details problems and what New Directions has found to be effective solutions to them. Special areas considered include California State Laws relative to private, alternative schools; college requirements and how to meet them; incorporation and tax exemption; employee taxation; bookkeeping; and miscellaneous suggestions for keeping expenses down, quality up, and problems away. (SH)