This report on the Adult Math Skills Project includes sections on theory, empirical studies, and their implications. Section 1 presents an overview, noting that activity and setting are seen as mutually creating, sustaining, and changing the nature of problem solving. The empirical studies involved: (1) arithmetic practices among grocery shoppers; (2) the acquisition of arithmetic skills by new members of a dieting group; (3) the management of money-flow through households; and (4) an exploration of the backgrounds and customary procedures of participants in the first two studies. Section 2 introduces the theoretical perspective of the project, using the money management study and other data for illustrations. In section 3, the various arithmetic tasks designed and carried out with 35 participating adults are described, followed by an analysis of the character of links between school-learned and everyday arithmetic. Section 4 analyzes the grocery shopping activity. Finally, section 5 discusses the implications of the studies for educational policy in the United States. An appendix contains the tests and tasks administered. (MNS)