This document provides comprehensive analysis of new key developments in the law regarding the proper relationship between religion and public schools. There are 12 chapters: (1) "The First Amendment and Public Schools: Overview of the Religion Clauses" (John Walsh, Dorine Lawrence-Hughes, and Usi N. Botros); (2) "Prayer on Campus: Thirty Years of Litigation and Counting" (Lisa A. Brown); (3) "Invocations at School Board Meetings" (Spencer E. Covert and Barbara J. Ginsberg); (4) "Accommodation of Student Religious Expression and Practices" (Cynthia Lutz Kelly); (5) "Accommodation of School Employee Religious Expression and Practices" (Andrew Ramzel); (6) "The Equal Access Act and Student Religious Groups" (Stephen S. Russell); (7) "From Equal Access to Distribution of Religious Material: A Constitutional Conversion?" (Stephen S. Russell and Melinda B. Kaufmann); (8) "Use of School Facilities by Outside Religious Groups" (Norman H. Gross); (9) "Public Aid to Parochial Schools: An Update" (Jay Worona and Patricia Gould); (10) "Religious Challenges to School Curriculum and Instruction" (Christopher B. Gilbert); (11) "Home Schooling" (David B. Rubin and Perry A. Zirkel); (12) "Beyond Litigation: The Use of Alternative Dispute Resolution To Prevent and Resolve Religious Disputes in Public Schools" (David S. Doty). Appendices include questions and answers concerning religious holidays in public schools, religion in the public school curriculum; the Equal Access Act and public schools; the text of the Equal Access Act; a chart on public aid to religious schools; U.S. Department of Education guidelines on religious expression in public schools; a statement of principles concerning religious liberty, public education, and the future of American democracy; U.S. Department of Education guidance on the Supreme Court's decision in "Agostini v. Felton" and Title I; and lists of resource publications and Web sites. (RT)