This report provides a progress report on the Art and Technology Integration Project (ATI), a partnership of the Westside and Grand Island Public Schools, the Smithsonian Institution's National Museum of American Art (NMAA), and the University of Nebraska at Omaha (UNO). The ATI project focuses on long-range assessment of the integration of the Internet and related educational technology into the school systems, specifically involving the development of interdisciplinary curricular units that integrate the visual arts. The program brings national art museums into classrooms electronically; develops computer integration strategies; trains and supports teachers; builds curriculum, instruction, and assessment strategies; and seeks to build a statewide community for art and technology integration. The report examines the effectiveness of the first year of ATI in relation to four goals: (1) expanding the use of educational technologies that support engaged learning; (2) using art and museum resources for cross-disciplinary integration into curriculum for grades K-12; (3) digitizing selected images and artifacts from the NMAA and making them available over the Internet; and (4) increasing teachers' skills, knowledge, and abilities to demonstrate integration by providing training in constructivist theory, art integration, and technology. Appendices include survey results, twelve participant interviews, four staff interviews, focus group feedback, completed image request forms, and sample lessons. (SWC)