A project was undertaken in the San Diego Community College District to develop a consistent districtwide placement testing program using the same test instruments and uniform cut-off scores for placement in English and mathematics courses. As part of the project, a study was conducted to correlate English placement test scores and grades for all English courses; analyze the relationship between English test scores and academic achievement; and make appropriate recommendations. The first phase of the study involved a sample of 3,305 Mesa College students tested between April and December 1982, 39% of whom had enrolled in an English course between fall 1982 and spring 1983. Analyses of students' English course grades with placement scores, conducted by ethnic category (white/non-white), high school attended, high school graduation status, gender, and age, revealed: (1) in only one course, English 101, was there a significant correlation between placement scores and grades; (2) non-white students showed a significant correlation between test scores and grades in English courses; (3) out-of-country high school graduates scored lowest on the placement tests, but had a grade point average higher than the whole group of graduates; and (4) a strong correlation did not exist between grades and test scores for the group as a whole. Observations and recommendations, and extensive data tables showing placement results, placement test scores, and grades are included. (HB)