In the course of a national survey of schools funded under Chapter 1 of the Education Consolidation and Improvement Act, other studies and data were reviewed to determine what was already known about compensatory education. This literature review covers several types of studies on the nature of Title I/Chapter 1 instructional services, staff, and coordinating mechanisms, including the following: (1) previous surveys of compensatory education; (2) Federal reports on the nature and scope of compensatory education; (3) selected studies or evaluations of the effectiveness of compensatory education; and (4) reviews of effective instructional practices relevant to compensatory education programs. The review is comprised of four sections. The first section, "Scope of Compensatory Education," surveys types of compensatory education, the prevalence of compensatory education, and types of services. The second section, "Nature of Compensatory Education Instructional Services," covers instructional exposure, strategies, content, and climate. The third section, "Characteristics of Compensatory Education Program Staff," reviews the literature on education and training, experience and certification, and the nature of teaching positions. The fourth section, "Coordination of Compensatory Education with Other Instruction," examines instructional settings and the mechanisms used to coordinate compensatory education with other instructional programs. A list of 35 references is appended. (AF)