Designed to assist educational decision-makers at the school and district level, this report summarizes the work of the National Task Force on Educational Technology, which was formed in the fall of 1984 to investigate the potential of appropriately integrated technology for improving learning in American schools. The task force used six primary sources of information in generating this report: descriptions of exemplary programs, commissioned papers, letters from educators and private citizens, existing research documents, site visits, and local public meetings. The report consists of eight major sections: (1) Transforming Education; (2) Observations on the Status of Technology in Education; (3) Technology in Education--the Potential; (4) Educational Applications of Technology; (5) Effects on Education; (6) Beginning the Transformation; (7) Recommendations; and (8) Concluding Remarks. Issues addressed include needed reform in pre- and in-service teacher education programs; negative and positive aspects of the use of technology in education; and the potential of such technological devices as personal computers, databases, and expert systems. Five broad uses for technology in education are then identified and discussed, and recommendations are presented to various constituencies (e.g., schools, school districts, state agencies, parents) for implementing strategies regarding planning; financing; teacher education; curriculum and instructional practice; research, development, evaluation and dissemination; and demonstration schools. Conclusions call for the creation of a system in which an individual learning plan permits each learner to proceed at a rate and pace that is challenging but achievable, makes no unjust comparisons with the progress of others, prevents students from becoming passive, and assures positive reinforcement and steady progress. A bibliography and list of the task force members are included. (JB)