A study examined the vocational and adult education system in isolated rural areas. The study included a review of literature, legislation, and exemplary programs, and conducted interviews with community leaders in twenty isolated, rural counties. Unstructured telephone interviews with representatives of the business, civic, and education sectors, supplemented by printed documents, resulted in the identification of problems facing vocational and adult education in rural areas. These included a lack of jobs, funding, and transportation; sparse populations; difficulties with teacher recruitment and retention; inadequate counseling and guidance services; lack of grantsmanship abilities; inaccessibility of services; student characteristics; and legislative mandates. The study revealed the importance of preserving the autonomy of the rural community, simplifying funding applications, and changing funding formulas. Nine priority areas relating to economic development, teacher training, linkages, access to education, supplementary services, and the needs of special populations were identified. Six policy implications were derived. These included providing technical assistance and federal funds for rural vocational and adult education, sponsoring research responsive to priority areas, establishing an office of rural education as a linking agency with federal agencies, and encouraging state departments of education to re-evaluate their rural programs. (MN)