Although the principal goal of the Lincoln Training System (LTS) is to develop prototypical hardware and lesson materials for military technical training, the computer-assisted instructional system is being studied for possible application in various areas of special education in the public sector. The LTS-1 terminal was prepared for testing. During the quarter, some additional instructional operations were added to the system, and the console control program was redesigned. A set of programed materials that incorporates examples of learner responses which reflect complex contextual and informational dependencies was developed. Continuing development of the LTS-2 system included the design of a random access microfiche transport and projection system and investigation of an audio record/read system which utilizes a laser beam deflection system. Various smaller pieces of component hardware were also tested for future incorporation into LTS. (JY)