This report's introductory section notes that both rural and gifted education have received relatively little funding and national attention, and few studies have considered the two issues in tandem. As a first step in the process of strengthening the education of gifted rural students, this report assesses the current state of gifted rural education. Section 2 gives a brief history of rural education in America, noting that today's educational model is essentially a continuation of the common school movement of the mid-1800s, whose emphasis on standardized age and ability grouping resulted in consolidation efforts that are still ongoing. Section 3 recounts the history of gifted education; notes that it has continually been sabotaged by myths and stereotypes; and presents the latest two misconceptions, about the benefits of technology and higher standards. Section 4 reiterates the fact that there is little information of any depth regarding rural and gifted education and cites three recommendations for research into rural gifted education. Section 5 examines the variety of definitions of "rural," and the frustration this causes. Section 6 discusses the unique qualities of rural schools and their implications for gifted education. Sections 7 and 8 present survey results concerning school characteristics in the 20 most rural states, and gifted education practices and obstacles in rural schools. Section 9 proposes seven recommendations for providing effective programming for gifted rural students. Appendices present survey forms, related tables and figures, 71 resources, and 154 references. (TD)