Reported was a project in which 60 educable mentally retarded (EMR) and 30 educationally handicapped (EH) elementary school students were placed in regular classrooms to determine whether they could be effectively educated in those settings. Effective education was defined in terms of improvement in reading, mathematics, student and teacher acceptance, and self-concept. Students were provided with individually prescribed programs based on daily assessment and prescription by a resource teacher, who also worked with regular classroom teachers to coordinate pupils' programs with regular class activities. Regular classroom teachers attempted to help handicapped students feel that they were valuable class members. EMR Ss were reported to have made an average of 9 months growth in reading and 12 months growth in mathematics achievement. It was found that EH students made an average of 11 months growth in reading and 12 months growth in mathematics achievement. Osgood's Semantic Differential Scale showed no differences in teachers' overall perception of handicapped versus nonhandicapped students. On the Auditory Self Concept Measuring Instrument, 77% of the EMR students and 86% of the EH students were reported to have reached criterion level. When the Stick Figure Test was used to measure self concept, 96% of the EMR and 100% of the EH students were found to have reached criterion levels. (Author/GW)