This report describes Palenque, an interactive, multimedia, optical disc research prototype developed for home use by 8- to 14-year-old children and their families. The report begins by providing an overview of the project, which is followed by a discussion of the target audience and context for use of the videodisc. A discussion of learning philosophy covers the roots of traditional instructional design, the substitution of less traditional roots for the design of elements of the Palenque discovery learning model how the design fosters incidental learning, and the creation of a flexible environment that allows for extended sessions and repeatability. The nature of the medium is then addressed--the unique features of the optical disc medium, inspiration from other projects, and features of the DVI (Digital Video Interactive) Development System. Design elements of materials that are incorporated in Palenque are described, including linear television narratives, interactive narratives, simulations, interactive games, multimedia databases, and interactive books. The report concludes with discussions of the concurrent process of design and development as research and the implications of future design efforts. (19 references) (MES)