The document describes the Dean's Grant Project at Augustana College (South Dakota) which focused on the implications of P.L. 94-142 (the Education for All Handicapped Children Act) for colleges and universities offering preservice and inservice teacher training programs. Implications of six major aspects of the law for higher education are focused on: the zero reject principle; individual education programs and appropriate education; the least restrictive alternative; testing, classification, and placement; procedural due process and parent participation; and personnel development/inservice training. Also provided is an outline of teacher mainstreaming competencies which include ability to recognize and describe the normal development behavior patterns of children, ability to demonstrate and utilize knowledge regarding classroom assessment procedures, and knowledge of the factors to consider in planning curricula. (SBH)