A case study was conducted of the Peguis Adult High School program (PAHS), a community-based adult education in a Manitoba First Nation community for repeat dropouts and students who did not fit into regular high school. A literature review of the historical relationship between federal/provincial governments and First Nation communities examined effects of government policy on programming and funding for aboriginal people. During a 3-week probation, 31 selected students attended a study skills workshop, group counseling sessions, and conference on Native Awareness and Traditional Values; 21 were chosen for program admission. PAHS upgraded students' skills to the entry levels postsecondary institutions required. Individualized instruction was emphasized; course content was organized into modules that allowed students to take only those necessary to pursue their occupational goals. Counseling, self-directed job search, and information on career building and resume writing were provided. Five students participated in a post-program interview; four believed course content was only partly relevant to them; three did not believe the program had long-lasting effects on their lives; and all implied a lack of communication between them and instructors. Findings were used to develop a model of an internally controlled employment and training program with four phases: collecting data; compiling data and reporting; planning and development; and implementation, evaluation, and follow up. (Contains 65 references.) (YLB)