THIS EVALUATION OF THE SECOND YEAR OF THE FREE CHOICE OPEN ENROLLMENT PROGRAM (OE) IN NEW YORK CITY'S PUBLIC SCHOOLS PRESENTS COMPARATIVE DATA FOR 26 RECEIVING AND 15 SENDING ELEMENTARY AND JUNIOR HIGH SCHOOLS. THE AREAS STUDIED WERE (1) CHILDRENS' CLASSROOM FUNCTIONING, (2) TEACHERS' CLASSROOM FUNCTIONING, (3) SCHOOL APPEARANCE, CLIMATE, AND FUNCTIONING, AND (4) ATTITUDES AND PERCEPTIONS OF PRINCIPALS TOWARD THE PROGRAM. DATA ARE BASED ON OBSERVATIONS, FOUR SPECIALLY DEVISED INSTRUMENTS, AND INTERVIEWS WITH PRINCIPALS. ON THE ELEMENTARY LEVEL, FINDINGS SHOW THAT NO TEACHER IN A RECEIVING SCHOOL WAS EVER RATED NEGATIVELY ON ATTITUDES, WHEREAS IN SENDING SCHOOLS 14 PERCENT RECEIVED THIS RATING. OE CHILDREN CONSISTENTLY SHOWED MORE EFFECTIVE FUNCTIONING IN AREAS OF VOLUNTEERING, PARTICIPATION, AND VERBAL FLUENCY. BUT THERE WAS NO EVIDENCE OF LONG-TERM IMPROVEMENT IN READING ACHIEVEMENT, ALTHOUGH OE CHILDREN DID BETTER THAN THE AVERAGE SENDING SCHOOL CHILD. AT THE JUNIOR HIGH SCHOOL LEVEL, THE RECEIVING SCHOOLS WERE AVERAGE OR ABOVE ON ALL THE EDUCATIONAL VARIABLES STUDIED. ALL THE GAINS SHOWN BY OE CHILDREN WERE ACHIEVED WITH NO LOSSES BY CHILDREN IN THE RECEIVING SCHOOLS. (NH)