Product of a 5-year study designed to improve programming for emotionally handicapped students in the Indiana Public Schools, the document consists of four major components. Section I, "Operationalizing the Definition," focuses on eligibility for services, psychoeducational evaluation procedures and interpretation, documentation of previous intervention efforts, and use of the Behavior Questionnaire (BQ) in assessment and development of the individualized education program (IEP). Appendices in Section I include the BQ, selected bibliography and behavior rating scale summaries, and a sample intervention checklist. Section II describes components necessary for a continuum of services based on severity, need for movement within the continuum, and changing program needs. Aspects of current practice in assessment, intervention, teacher training, interprofessional relationships, and life planning which pose obstacles to effective programming are discussed. Appendices to this section include an annotated bibliography and selected model program descriptions. Section III concentrates on staff development, identifying preservice teacher competencies and inservice competencies for administrators, regular and special education teachers, school psychologists, behavioral consultants, and other related professional and nonprofessional personnel. Curriculum, the topic treated in the final section, looks at classroom management and instruction, behavior management, affective education, and vocational education. References, checklists, and sample forms are appended. (JW)