In response to the growing Latino population, a project examined barriers and supports for community development for Latinos in seven rural Minnesota communities. In each community, bilingual facilitators conducted two Latino and one non-Latino focus groups. Findings revealed much strength in these communities. Residents appreciated the economic and multicultural contributions of the Latino community. Cultural diversity task forces, Latino organizations, and other initiatives were emerging in some communities. Multicultural libraries were under construction in two communities. Among the barriers identified, the most alarming was the high number of high school dropouts among Latinos. This issue must be addressed or a significant percentage of the future workforce will be unprepared. Continuing education among adult Latinos was also of great concern, as it was seen as a primary way to advance in the workforce and create Latino leaders. Language was another key barrier. Bilingual community education is needed--the lack of interpreters inhibits the ability of Latinos to interact with key community institutions such as health care, law enforcement, and government agencies. Tension between Latinos and law enforcement was noted, indicating a need for bilingual and bicultural police officers and for cultural competency training. Communities should integrate Latino members into local community leadership positions. This will decrease "insider/outsider" perspectives and reduce cultural tension. The creation of Latino-specific support groups should also be supported. Appendices describe the communities and participants. (Contains 12 references.) (TD)