This document describes the Physical Education Learning Laboratory (PELL) of Temple University (Pennsylvania), a competency based physical activity program in which students (both physical education majors and non-majors) receive semester hour credits for demonstrating their knowledge and skills in whatever physical activities they select. Objectives of the program are described under the headings of variety, competency, life-long participation, motion analysis, socialization, self-responsibility and reliance, and self-worth. Procedures used in the laboratory are examined, including variable credit, orientation meetings, learning resources, testing procedures, credit granting processes, and feedback. Aspects of learning found to require unexpected amounts of attention are: accurate advisement, staff accessibility, materials, learner-oriented information, and continued faculty development.(MJB)