Described is the third year of a Paterson, New Jersey, urban early childhood education project for disadvantaged children; and summarized are achievement data on entering third level (grade) children in 10 performance areas. Noted are revision and reordering of performance objectives, development of summary sheets for recording each child's skills, and record keeping procedures. Given is descriptive information about the third level children which includes mean family income ($6,300), parent occupations, family size, and mean IQ score gain from pre-kindergarten through the second level (from 86.1 to 89.5). Provided is data on the mean achievement of entering third level children on performance objectives in the following areas: listening, naming, observing, speaking, perceptual motor skills, writing, classification, mathematics, decoding, and seriation. (DB)