The final report describes the 3-year project, "Functional Mainstreaming for Success," designed to develop a model for instructional mainstreaming of 162 handicapped children (3-6 years old) in community settings. The major feature of the project was development of a full reverse mainstreamed preschool program, which included children with and without handicaps in the same class at a 50:50 ratio. The project developed and implemented materials to teach necessary skills to administrators; regular, preschool, and special education teachers; and related personnel. Activities included assessment, inservice training, provision of materials, technical assistance, and direct support. Attitudes of parents, normal children, and school personnel toward handicapped children became more positive as a result of project activities. The progress of the handicapped children in the total reverse mainstream classrooms generally surpassed that of similar children in partial mainstream classrooms, and was very similar to that of normal children in the mainstream classroom. Social interaction of children in the total mainstreamed classrooms was similar to that of peers who were not handicapped. (Author/DB)