A research project was conducted at Brevard Community College, Florida, to evaluate the influence of non-punitive grading (i.e., I for incomplete and W for withdrawal) on student grade point averages (GPA's) and to determine faculty attitudes toward the factors which influence the GPA and students' eligibility for academic performance categories such as honor rolls and probation lists. The 29,580 grades assigned to 9,946 students at the end of Winter 1979 were used in the study. Traditional GPA's, not influenced by I or W grades, were compared against Term Progress Indexes (TPI's), in which I's, W's, and F's carried a grade point value of zero. The study revealed that 23.8% of all semester hours did not enter into the calculation of the students' GPA's, and that the average GPA was 3.02, while the average TPI was only 2.30. Further, the use of the TPI caused a statistically significant change in the number of students in each academic performance category. Results of an instructor survey, based on a 68% return rate, indicated that the majority of the teachers used criteria-referenced grading methods and that there were several areas of disagreement between present grading policies and the preferences of the instructors. The study report includes a review of the literature and summary conclusions and recommendations. (Author/JP)