This report examines school physical education (PE) and how it can be an important part of the national physical activity promotion effort. Section 1 introduces the issue of youth activity and PE, noting that schools and universities must reintroduce daily, quality physical activity as a key component of comprehensive education. Section 2 discusses the current status of PE in schools, noting that few students receive daily PE. Section 3 examines activity levels of American youth, explaining that young children are relatively active, but by adolescence, activity levels decline. Section 4 discusses how much physical activity is enough, explaining that moderate levels can have significant health benefits, but varying activity patterns of young children, adolescents, and adults must be considered when developing physical activities. Section 5 discusses how physical activity relates to physical fitness in youth. The relatively low relationship between fitness and physical activity is a good reason for PE to emphasize physical activity rather than fitness. Section 6 discusses whether PE promotes physical activity in youth, concluding that well-conducted PE can generate increased activity levels during the school day and increased active living outside the school. Section 7 examines whether time spent in PE during school decreases learning in other areas. Evidence suggests that PE does not detract from learning in other areas. Section 8 discusses reasons for including regular PE in the curriculum. (Contains 43 references.) (SM)