This manual is intended to guide school administrators, teachers, school psychologists, and others with the design and implementation of interim alternative education settings (IAES) in compliance with the Individuals with Disabilities Education Act (IDEA) as amended in 1997. Chapter 1 discusses how the IAES evolved as a means of balancing the right of all children to safe schools and the rights of children with disabilities to a free and appropriate public education. Chapter 2 reviews the legal provisions pertaining to IAES including removal from a student's current placement for disciplinary reasons, especially in cases involving weapons or drugs, and requirements concerning functional behavioral assessment and intervention. Chapter 3 proposes "best practices" for IAES based on the disciplines of general education, educational psychology, school psychology, and special education. A final section identifies future legal and educational challenges in the development and implementation of the IAES concept. A list of agency and organizational resources is attached. Two appendices present: (1) three case studies involving placements in IAES that exemplify the application of legal principles; and (2) the text of IDEA '97 regulations pertaining to IAES. (Contains 47 references.) (DB)