The Educational Data Services Department of the Palo Alto Unified School District is responsible for implementing data processing needs to improve the quality of education in Palo Alto, California. Information from the schools enters the Department data library to be scanned, coded, and corrected prior to IBM 1620 computer input. Operating 17 hours per day five days per week, the computer handles information on student grades, attendance, student programs, scheduling, testing, special reports, instructional materials, and personnel, in addition to instructional and guidance functions. As both the object and base of instruction for students and teachers, computer use should be cooperatively determined by educators and computer scientists. An example of a guidance dialogue between student and computer accompanies the text. (TI)