The report, second in a series of five on mainstreamed handicapped students in vocational education, synthesizes findings from a literature review and an organizational capacity study of the Portland, Oregon, school district. Considered are such topics as the status of the art, organizational issues (including inservice programs and planned work experience), issues related to teacher attitudes, instructional equipment, and structural barriers. The prognosis for implementing P.L. 94-142, the Education for All Handicapped Children Act, is considered in terms of facilitating factors (such as the existence of good support systems and agreement on the importance of preparation for work) and inhibiting factors (such as funding restrictions). (CL)