This paper, commissioned for the development of the national report, "National Excellence: A Case for Developing America's Talent," provides historical background on issues in gifted education, together with ideas and practices from the special educational strategies now in use for gifted students. The report focuses on the nature of superior intelligence, the general school adaptations for these children, current and unresolved issues in the education of the gifted, and specific policy issues in gifted education. Historical information describing how early cultures addressed or failed to address the needs of gifted children is offered. A major problem is seen to be the ambivalent feelings toward gifted children traditionally seen in the American society. Various definitions of giftedness are discussed, as are traits that characterize gifted children. Specific current issues addressed include the following: (1) educational reform; (2) creativity; (3) underserved populations (cultural differences, gifted girls, and gifted students with disabilities); (4) accountability; and (5) equity versus excellence. Future research is urged in such areas as understanding intellectual processes, assessing educational strategies for gifted students, and information processing. A table summarizes federal policy and legislation regarding the gifted since 1958. (Contains 95 references.) (DB)