Beginning in 1978, Fullerton College implemented a mandatory assessment/placement program designed to assess student skills, ameliorate skill deficiencies through basic instruction, and place students in classes appropriate to their level of competency. A study was conducted to determine the impact of the skills prerequisite system on the progress and performance of students. The study examined placement patterns, dropout rates, effects of remediation on subsequent grade point average (GPA) and academic persistence, differences attributable to age and sex, frequency of misplacement, and the relationship of reading levels and math scores. Two research samples were selected from the population of 8,250 students tested in 1982-83 by means of a cluster sampling: a group of 658 students tested in preparation for fall 1982 enrollment and a group of 419 students who successfully enrolled in specific remedial courses in reading, writing, and mathematics. Study findings included the following: (1) test scores showed that 85% of the students needed remediation in writing, 69% in reading, 48% in computation, and 67% in algebra. (2) students who did not enroll in remedial courses during their first semester rarely did so during their second; and (3) misplacement rates were 9.3% in writing, 6.2% in reading, 1% in computation, and 33.4% in algebra. The bulk of the study report consists of data tables detailing scores, grades, and other findings. (HB)