The seventh volume of a 10-volume report, this document discusses the findings of the study's state component, especially as the activities of the states relate to and are influenced by federal dissemination programs. An analysis of the dissemination and school improvement activities in 10 states revealed 2 distinct orientations. Some states were "maintenance" oriented, maintaining a separation between the dissemination activities of the various categorical federal programs and initiating no statewide effort or project for improvement. Other states had a "development" orientation, coordinating federal support in such a way that local education agencies were required or encouraged to mount efforts to improve their functioning and/or their instructional processes. The volume analyzes the antecedents, characteristics, and accomplishments of both kinds of orientations and draws implications for federal and state policy. (TE)