This research report examines the school and home experiences of the black inner-city kindergarten, first, and second grade child. A team of researchers observed the homes and classrooms of selected children over a three-year period in four schools in a midwestern city in the United States. All of the children, teachers, and staff in these schools were black. For comparison, two white middle-class schools and one white working-class urban school were also studied. The primary method used was systematic non-participant observation. In all, more than 306 classroom observations were made--242 in black classrooms and 64 in white--each observational period being approximately ninety minutes. There were 180 home visits of 28 families. Supplementary data include interviews with teachers, principals, staff personnel, superintendents, and members of the school board; observations of teachers' meeting and parent teacher association meetings; informal conversations with teachers, principals, and children; and, materials such as report cards, classroom work, displays, office memos, children's drawings, public reports on the school system, and the like. By documenting the processes by which educational failure is assured for many children, it is hoped that points of possible change will be suggested to reduce the casualties. [This document is marginally legible when reproduced, due to the quality of print of the original.] (Author/JM)