This report presents guidelines for complying with the Supreme Court's "Aguilar v. Felton" decision, which held that the method most commonly employed by local educational agencies to serve private school children under the Chapter 1 program-- public school teachers providing instructional services on the premises of non-public sectarian schools--was unconstitutional. The report is divided into two parts. The first provides: (1) legal analysis of constitutional guidelines for providing Chapter 1 services and (2) analysis of permissable uses of funds under Chapter 1 and how these fit into constitutional guidelines (both prepared by the Congressional Research Service in the Library of Congress); (3) comments on these legal analyses by the Departments of Justice and Education; and (4) the Department of Education's "Felton" guidance document. Part 2 describes what some school districts are doing to effectively comply with Felton. Case studies of a number of school districts are presented. (KH)