A qualitative pilot study, guided by an ecological framework, illustrates the complexities involved in studying the unique linguistic situation in Paraguay between Spanish and the indigenous language of Guarani, and its relationship with education. The pilot study interviewing eight kindergarten children. Seventy five children have been interviewed since the pilot study was completed. Teacher questionnaires were completed by 25 teachers, 4 of which are discussed in detail. This report focuses on eight Paraguayan elementary school kindergarteners (n=4 each males and females) and their teachers from each school participating in the study. Interviews and questionnaire results are presented through vignettes which indicate that social factors play a role in language choice in this diglossic environment between Spanish and Guarani. Focusing on the individual child, the study also takes into account the parental views of education and the teachers' pedagogical practices surrounding language instruction in this bilingual context. Appended are interview questions, a bilingual picture task, and the teacher questionnaire. (Contains 7 notes and 19 references.) (Author/BT)