Prepared under provisions of a federal grant for preparing teachers of handicapped students in both regular and special education classrooms, the inservice project described in this report was intended to retrain both regular classroom and special education teachers in a Texas school district in the research-based strategies of spelling instruction. The six chapters of the report contain the following: (1) a description of the grant and its rationale; (2) a review of research supporting the need for teacher retraining, on both a national and a state level; (3) descriptions of two studies conducted in the school district to compare teachers' personal beliefs about spelling and their actual teaching practices and their beliefs about spelling and their personal spelling habits; (4) a description of the phase one training model, which involved a central office administrators' awareness session, a building-level administrators' planning session, training of experimental group teachers, training of the control teachers, and selection of experimental and control classes; (5) the results of a study that investigated the effectiveness of the training program; and (6) a description of the second phase training model, used with volunteer teachers throughout the school district. Extensive appendixes contain copies of test instruments used in the study, tables of data, and materials used in the training program. (FL)