The report summarizes accomplishments of a project designed to provide mainstream leisure art and involvement in Appalachian crafts for mildly handicapped students through (1) the development of an Instructional Materials Development System and (2) the creation and pilot testing of instructional program packages that exemplify the use of this system. The application of the Four D model (defining, designing, developing, and disseminating) to the development of folk craft instructional materials is reviewed. Formative evaluation comments and recommendations are listed for the instructor's manual, which was then pilot tested on a group of potential users. Pilot testing of the instructional packages revealed that instructors were able to successfully teach folk craft processes using the project's materials. Dissemination efforts included presentation at professional conferences and meetings and short- and long-term demonstrations of project materials. Project findings revealed increased confidence in students who participated in community craft fairs and exhibits and suggested the value of encouraging cooperative programing efforts among public schools and parks and recreation agencies. Among seven appendixes are sample materials review forms and information on task analysis. An attached booklet presents excerpts from interviews with 12 handicapped adults who actively pursue crafts. (CL)