Virginia's 1988 General Assembly mandated special technical assistance to develop pilot rural child care programs through the collaborative efforts of the Department for Children, the Department of Social Services, and the Virginia Cooperative Extension Service. This interim report provides an update of program activities and describes processes utilized to effect solutions to rural child care problems. Tentative conclusions of the project follow. First, a grassroots, community-generated and supported effort is the key to the success of meeting rural child care needs. Collaboration and cooperation among agencies, public and private groups, jurisdictions, and citizen groups are of paramount importance in effecting solutions to child care problems in rural areas. Public education efforts are needed to inform communities concerning local child care service gaps, service requirements, and child care professionalism. Finally, training, technical assistance, and support services are essential to maintaining a coordinated, child care system in a rural community. Included in the report are a step-by-step blueprint for state-level technical assistance, a list of project phases, a list of strengths and barriers related to meeting project goals, and descriptions of short-term and long-term strategies and their implementation. (RH)