This paper examines grading policies and the college student culture, as part of an ongoing collaborative study of the socialization of beginning teacher educators on four campuses. Utilizing a combination of participant observation and action research to arrive at a better understanding of grades and the improvement of grading practices, four teacher educators shared journals and conducted inquiries on aspects of teaching that both intrigued and troubled them. After 3 years it was determined that grades were the source of literally all conflict with students. A framework is provided for: the exploration of research on college grading practices; political, cultural and ethical contexts of grading decisions; everyday manifestations of "grade-orientation"; student justifications for grade changes; what students believe grades should mean; and the presentation of two vignettes describing grading fiascos. Although a graduate course on grading methods is not suggested, it is recommended that the topic be included in policy discussions at the graduate level. A table, based on a series of psychological studies characterizing college students as being either grade- or learning oriented is appended. (Contains 41 references.) (LL)