This report evaluates the first 2 years of the Children's Hearings Project (CHP) which mediates in family conflicts involving rebellious and truant adolescents in Massachusetts. The report is divided into 11 chapters. Following an introductory chapter, chapter 2 describes staff, procedures, and mediator selection and training. Chapter 3 presents demographic information of the families who came to the CHP. It contrasts the families in mediation with those who are not. Chapter 4 describes the legal process called Children in Need of Services, and the typical approaches and strategies judges use in handling these cases. Chapter 5 describes the mediation process, and Chapter 6 outlines the issues in mediation and compares the process to court and counseling. Chapter 7 presents the families' view of mediation: their estimates of its effectiveness and its impact on communication and family functioning. Chapter 8 describes the characteristics of the mediators, their motivations, their perceptions of the families, and their understanding of the process. Chapter 9 compares the process by which the court and the CHP handle these cases and assesses mediation's impact on court caseloads. Chapter 10 compares the CHP with the role and work of the Children's Panels in Scotland. Chapter 11 summarizes the report and points out the implications for juvenile justice, social welfare policy, and the theory of mediation. A 22-item bibliography and 93 statistical tables are included. (KH)