A study examined the impact of teaching handicapped students in regular vocational education classrooms on class interaction and instructional variables. During the study, researchers conducted individual interviews with 22 vocational education instructors from 11 randomly selected school districts throughout Texas and later conducted a total of 678 thirty-six minute observation periods of the vocational classes taught by these same 22 teachers. Based on their analysis of the data obtained from the class observations and instructor interviews, the researchers concluded that over 90 percent of the timed classes were organized as a group with handicapped students participating fully within the group. Ninety-six percent of the vocational instructors stated that the general interactions of handicapped and nonhandicapped students in the vocational setting were positive. While 87 percent of the teachers had not seen a copy of their students' individualized education programs (IEP), all of the vocational instructors were individualizing instruction for the handicapped students in their classrooms. Generally speaking, the modifications that were made for the handicapped vocational students were of an instructional nature and did not entail any excess costs. Recommendations were made calling for more hands-on activities and more one-to-one instruction for the handicapped students in regular vocational settings. (MN)