The study was designed to demonstrate the effectiveness of diagnostic teaching with 70 children (6 to 14 years old) with learning and behavioral disorders and to investigate the administrative plan which is most efficient and effective for implementing diagnostic teaching. Ss were divided into three experimental groups--Experimental Group I with teachers assisted by a resource teacher responsible for clinical remediation and by a teacher aide, Experimental Group II with teachers assisted by a resource teacher only, and Experimental Group III with teachers assisted by teacher aides. Teachers were graded in the areas of lesson preparation, teaching skills, communication skills, relationship with pupils, classroom management, and professonal and personal qualities; and students were given a test battery of descriptive and diagnostic tests. The psychoeducational diagnosis process was considered in terms of test information collection, guidelines for analyzing test results, and interpretation of psychoeducational data. Several case studies demonstrated how the prescriptive teaching programs were designed and implemented. Pre- and posttest analyses focused on students' intellectual, perceptual-motor, language, social, and academic development. Among findings were that prescriptive teaching was successful in improving functioning in language, perceptual-motor, social, and academic development; although test scores did not increase in a simple one to one ratio of remedial exercise to area of deficit; and the administrative plan most efficient and effective in implementing the prescriptive teaching program was the teacher aide and resource teacher combined, with the resource teacher alone almost as effective. A checklist to assist teachers in structuring observation of the child is included. (SB)