A large scale investigation into the development and effectiveness of a collegiate level computer-assisted instruction (CAI) course in undergraduate physics is reported. The work, which began in 1966, involved a full commitment to investigate all phases of the development, execution, revision, and cost-effectiveness of a CAI physics course from a research point of view. This volume of the study covers the topics of: 1) the statement of problems, 2) the background literature, 3) the developmental curriculum processes, 4) a description of the multimedia techniques used within the course, 5) a set of CAI physics problem exercises, and 6) the three subsequent field studies. It concludes with a presentation on cost analysis and a summary of important conclusions. Volume 2 of the study (EM009606) presents the appendices that describe in complete detail the nature of the learning material and evaluative instruments utilized. Volume 3 (EM009607) is a presentation of the CAI curriculum. (JY)