The purpose of this report is to see what the literature has to say about motivation and group interactions, both with and without the assistance of computers. The ultimate purpose is to examine in detail how the emerging ideas can be used to enhance the teaching and learning of arithmetic using computers. This report is divided into the following sections: motivation, teaching, and small group interaction. Each section contains general considerations and summaries of the major research papers of interest. Topics covered in these papers include curiosity, fantasy or play, interest of students, attitudes of students, teaching methods, discovery learning, Piagetian and Neo-Piagetian methods, evaluation of teaching methods, problem solving, knowledge processing, goal construction, and cooperative learning. (KR)