This handbook is designed to provide parents and advocates with the information they need to take an active role in Chapter 1 programs. It contains 11 chapters. Chapters 1-4 are designed for anyone interested in learning more about the basic requirements of Chapter 1 law. Specifically, these chapters provide a brief overview of the law, explore the legal requirements, analyze the chronology of steps that school districts receiving Chapter 1 funds must follow, discuss the key rights of children in the Chapter 1 program, and describe parental involvement requirements of the law. Action-oriented strategies for those who want to improve Chapter 1 programs are contained in chapters 5 and 8 through 11. Chapter 6 describes the problems in the ways many schools are setting Chapter 1 goals, designing their programs, and evaluating students; it also suggests important directions for change within each of these areas. Appendices provide relevant laws, regulations, and guidelines; examples of Chapter 1 programs and parental involvement programs; a list of the Regional Technical Assistance Centers; and the special Chapter 1 programs operated by state agencies. (GLR)