Intended for physical education teachers, the booklet describes informal and formal methods for evaluating handicapped children to determine whether they can participate in a regular physical education program with nonhandicapped students, in a regular physical education program with modification, or in a specially designed physical education program. Following an explanation of informal and formal assessment are descriptions of the following physical education assessment tools: a sample summary diagnostic form based on observations; I CAN--Primary Skills; I CAN--Sport, Leisure, and Recreation Skills; Assessing and Programing Gross Motor Development for Children; Peabody Developmental Motor Scales; the Portage Guide to Early Education; Project Active; Purdue Perceptual Motor Survey; McCarthy Screening Test; Southern California Motor Accuracy Test; Southern California Sensory Integration Test; Southern California Kinesthesia and Tactile Perception Tests; Southern California Perceptual Motor Test; Ayers Space Test; the Denver Developmental Screening Test; Bruininks-Oseretsky Test of Motor Proficiency; Stott-Test of Motor Impairments; Physical Fitness Test Battery for Mentally Retarded Children; Special Fitness Test for Mildly Retarded Persons; Motor Fitness Testing Manual for the Moderately Mentally Retarded; and Project Unique. Information on each tool usually includes purpose, test age, testing time, content, and areas assessed. A bibliography concludes the booklet. (SB)