This study examined the effectiveness of mediation (in comparison with due process hearings) in resolving disputes between parents of children with disabilities and school districts. Respondents (from 10 states) included 35 parents who had taken part in a mediation procedure only; 29 in a mediation procedure prior to a due process hearing; and 18 in a due process hearing only. The "Parent Satisfaction Survey" was developed and used to assess parental satisfaction with either the due process hearing or the mediation procedure as well as the outcome of these processes in respect to specific variables (such as the nature of the conflict, the nature and severity of the child's handicapping condition, the child's age, and the socioeconomic status of the parents). Results indicated that parents who took part in the mediation procedure reported significantly lower ratings of emotional cost to both parents and families. However, in relation to the other variables under study, there were no significant differences indicated between parents in the two groups. A systematic policy analysis of both mediation and due process conflict resolution processes resulted in recommendations for: (1) the development and maintenance of collegial relationships between parents and the schools; and (2) that a mediation "model" be established based on effective methods of conflict resolution. Appendices include project forms and letters and the Parent Satisfaction Survey instrument. (Approximately 100 references) (DB)