This report refers to a generation under challenge, meaning the 18-to-24-year-olds who have recently come of age in the United States. A significant part of this generation has fallen victim to a neglected past and may be overwhelmed by its future. The report argues for an integrated and comprehensive service delivery system that can make a difference in disconnected lives in the following chapters: (1) "Confronting the Demographic Challenge: Future Labor Market Prospects of Out-of-School Young Adults" (Andrew Sum, Neeta Fogg, and Neal Fogg); (2) "Investments in People Matter" (Stephen Mangum and Nancy Waldeck); (3) "Tales from the Bright Side: Conversations with Successful Graduates of Youth Employment Programs" (Edward deJesus); (4) "Out of School and Unemployed: Principles for More Effective Policies and Programs" (Gary Walker); (5) "Creative Resource Development: An Assessment of Potential in Selected Cities" (David Gruber); and (6) "Moving into the Mainstream: Making Connections for Disconnected Youth" (Marion Pines and Bill Spring). (Contains 17 tables and 1 chart.) (SLD)