A study using microcomputers for instruction in sentence-building skills with two groups of American Indians in bilingual education programs found computer-assisted instruction to be effective in developing differential skills in the different age groups. The method used small group activity at the computer, emphasizing the cooperative learning environment preferred by Native American students, and encouraged the students to create their own fonts on the computer as a means of focusing attention on the task. Same-age and older-younger peer interaction was observed and recorded. It was found that the students were willing to spend the necessary time on the task, and communicated with the instructor and with peers about it. Older students were found to show more learning initiative than younger students. It is concluded that the use of computers for developing and holding interest in language skill learning holds potential for a group culturally predisposed to negative attitudes about language learning and lack of language proficiency. (MSE)