This paper describes an ongoing study evaluating families that provide in-home care to elderly relatives wth dementia. Characteristics of the study, which include a focus on progressive senile dementia, use of a clinical approach, longitudinal design, descriptive nature, focus on the dyad of patient and primary caregiver, and use of videotaping for direct observation, are explained. The conceptual model used to organize data and the general research design of the study are described. The sequence of steps involved in evaluating families is given including: social history interview; physical exam; psychiatric evaluation; problem-oriented interviews; neuropsychological testing (patient); family history/social network interview (caregiver); take-home instruments; videotaped interactions; and wrap-up session. The methods used for measuring family dynamics and coping strategies, and suggestions for videotaping and quantifying family interactions are reviewed. Outcome measures devised specifically for this study are noted, and various other instruments used for data collection and evaluation are named. A series of 12 graphics illustrating the study components covered in the text is appended. (WAS)