Through interactive-observation, the strengths of the video recorder (actual viewing experience) and the strengths of the computer (capability for feedback, record keeping, and problem analysis) can be combined and used in the preparation of personnel to educate handicapped children and youth. In the area of communicative disorders, accurate videotape portrayals of speech-language and hearing problems could readily be transported from special rehabilitative sites to training facilites to familiarize educational personnel with the nature of a given disability and strategies for classroom management. In interactive-observation, a computer is connected through special hardware and software to a video player, and the computer controls the tape presented by the video system depending on the viewer's responses to the lesson programmed into the computer. Benefits of interactive-observation to the trainees include: more available information; rapid access to information; individualized instruction; increased motivation; increased attention span; and more immediate feedback. Benefits to the training institution include: more efficient inservicing; uniformity of information; better organization and control of training information; and a greater capacity to provide information to trainees and teachers. This paper describes this innovative teaching system, and includes some basic information on the type and cost of equipment (both hardware and software) necessary to run an interactive-observation learning center. (CB)