This report attempts to clarify Title I requirements in order to enhance the development of new State and local special programs and the modification of existing programs in a manner that conforms to Title I rules. Five fundamental areas are addressed. These include: (1) the basic requirements contained in the Title I legal framework applicable to programs operated by local school districts and why the various requirements are necessary; (2) which State and local programs qualify for special treatment under Title I; (3) what criteria a program must satisfy in order to qualify for extra Title I funds under the new special incentive grant provision; (4) how State and local special programs can be developed to expand the number of children presently receiving compensatory education without running afoul of Title I requirements; and (5) how Title I programs which serve educationally disadvantaged children can be coordinated without running afoul of Title I recordkeeping requirements. Major points made in each of these five areas are summarized. (Author/EB)