This paper presents a comprehensive review of special and remedial education practice in formative evaluation of goal attainment among mildly handicapped students. First, the relationship of formative evaluation to the range of special education assessment practice and its importance to the field are described. Then, four critical issues in formative evaluation methodology are discussed: focus of measurement, frequency of measurement, data display, and data-utilization methods. The reviewed research supports the use of ongoing criterion-referenced monitoring systems to improve the instructional programs of mildly handicapped students. Research also provides the basis for several statements on the nature of effective monitoring systems among mildly handicapped populations. Specifically, the data base supports the use of (1) certain empirically validated critical behaviors as the focus of monitoring activity; (2) long-term goal statements that may encourage teachers to focus not only on the immediate instructional content, but also on maintenance and generalization of skills; and (3) relatively ambitious goals that support task persistence and striving. The literature also provides a rationale for teachers to measure student performance at least twice weekly; to graph data using their preferred convention; and to employ data-utilization rules for determining when, and perhaps how, to modify students' instructional programs. An eight-page reference list is appended. (PN)