This study identified critical factors in two states as they begin to develop family centered policies for the Infant and Toddlers Program as required by Part H of the Individuals with Disabilities Education Act. It focused on the Individual Family Service Plan, the identification of families' strengths and needs, and case management. Data were gathered through structured on site interviews with various state agency personnel. In the first state, implementation has been primarily an effort of a single lead agency while in the other implementation efforts have stressed shared interagency responsibilities. After an executive summary and introduction, the study's methodology is detailed, and the results summarized for the following areas: family strengths and needs, entitlement issues, and service coordination. Five major recommendations were made. These are: (1) states should reexamine their structures for providing early intervention services; (2) families, advocates, and providers should be fully informed of the issues and options involved in providing early intervention services; (3) multiple vehicles are needed for input from the local level to reach state policy makers; (4) the multiple agencies that provide services to this population should be identified and invested with authority; and (5) personnel from all strata of program implementation and policy making should be involved. (13 references) (DB)