Described are the problems in the New York City Schools' transportation system for handicapped pupils, and suggested are ways to improve services. The study included interviews with administrators, teachers, parents, students, bus drivers, and bus company representatives; observations at various school settings; and analyses of budgetary factors. Considered in separate sections of the report are such aspects as sample complaints, system operation, cost factors, comfort and safety, and accountability. Among recommendations listed are increased travel training for students, instruction for bus drivers in working with handicapped children, and development of transportation standards. Included in three appendixes are sample forms used by the Bureau of Pupil Transportation. (CL)