Conference papers and recommendations on the implementation of Chapter 1 services are reviewed. Four issues of concern emerged from the research papers. These issues were reviewed by a panel of experts, and a set of recommendations was developed for more effective and prudent application of Chapter 1 principles and funding. These recommendations are the following: (1) funds should be concentrated in schools in neighborhoods with high percentages of children living in poverty, and funds should not be cut off from these schools when achievement increases; (2) the allocation of funds should be school-based in high poverty areas; (3) families should be involved in activities that enhance the educational capacity of the home and reduce home-school dissonances; (4) Chapter 1 funds should be set aside to support projects which evaluate and add to the knowledge of educational disadvantagement; (5) schools should be allowed to use Chapter 1 funds for training, technical assistance, and capacity building; (6) Chapter 1 services should enrich students' understanding of school subjects, rather than providing only remediation of basic skills. A list of the papers and the panel members is included. (VM)