A policy study was conducted in four rounds to assess the anticipated payoff of investment by the Advanced Research Projects Office in the development of a new family of terminals for use by the military in computer-assisted instruction. Members of the panel of experts proposed features, rated them, and reacted to the resulting ratings. Of the 24 features, those rated as most needed were seen by these experts as likely to be in commercial production five to ten years from now in a form usable by the military. Experts generally agreed that investments in innovative pedagogical software and in innovative course writing are likely to have greater payoff than an investment in terminal development. Of 14 software features, those rated as most needed were ones for particularizing instruction online to the course-related needs of individual students. The report is a thorough description of the conduct of the study. (EMH)