This report identifies how involvement with the arts provides unparalleled opportunities for learning that enables young people to reach for and attain higher levels of achievement. The research provides examples of and evidence why the arts should be more widely recognized for their current and potential contributions to the improvement of U.S. education. The experiences offered to many young people outside of the school environment are often limited in their purpose and resulting impact. They provide recreation, but no sense of creation. They provide recess, but no sense of success. Successful arts learning outside of schools can enhance the sense of accomplishment and well being among young people. Realizing the full potential of learning in and through the arts for all U.S. children requires heroic acts from all segments of society. Involvement with the arts must be a basic part of the learning experiences. Chapter titles in this report include: (1) "Involvement in the Arts and Human Development: General Involvement and Intensive Involvement in Music and Theater Arts" (James S. Catterall; Richard Chapleau; John Iwanaga); (2) "Imaginative Actuality: Learning in the Arts during the Nonschool Hours" (Shirley Brice Heath; Adelma Roach); (3) "Learning in and Through the Arts: Curriculum Implications" (Judith Burton; Robert Horowitz; Hal Abeles); (4) "Chicago Arts Partnerships in Education: Summary Evaluation" (James S. Catterall; Lynn Waldorf); (5) "Artistic Talent Development for Urban Youth: The Promise and the Challenge" (Barry Oreck; Susan Baum; Heather McCartney); (6) "'Stand and Unfold Yourself,' A Monograph on the Shakespeare & Company Research Study" (Steve Seidel); and (7) "Why the Arts Matter in Education, or Just What Do Children Learn When They Create an Opera" (Dennie Palmer Wolf). (LB)