This report presents recommendations on interactive video transmission standards, equipment, room designs, and service plans for member institutions of the Midwestern Higher Education Commission (MHEC) and reviews MHEC's efforts to find and contract for such services with vendors. The report describes the MHEC objective of establishing a dial-up, high speed, two-way interactive video network across the Midwest and the service vendor evaluation process. It notes the four service levels identified and the presentation and demonstration of vendors' plans. The seven recommendations include: (1) using one standard for all equipment; (2) purchasing the product lines of British Telecom (BT) and Compression Labs, Inc.; (3) adopting certain equipment purchasing policies; (4) use by institutions of the MHEC Telecommunications Network for transmission of interactive video signals; (5) urging institutions to consider purchasing one of three MHEC-defined room systems to meed individual needs; (6) urging institutions to consider purchasing one of four MHEC-defined service levels; and (7) using of the products of BT North America, Inc. for BT product lines and Norstan Communications, Inc. for CLI product lines. Appendixes contain program agreements with BT and Norstan, sample costs, request for information, information in the MHEC Virtual Private Network, and a list of MHEC personnel. (JB)