This paper describes a project designed to facilitate and evaluate child and family mental health in the community, inside and outside of Head Start programs. Also detailed is a study of the effects of "Community Impact" programs and 6-week, focused, group interventions for children and families in programs predicted to increase children's emotional security and readiness for learning while enhancing the family interactions among Head Start-aged preschoolers, their parents, and caretakers. The study evaluated two initiatives: the effectiveness of existing community programs for families and of an innovative competence building program for culturally diverse groups coping with developmental stressors of parent/child interaction or more extreme stress and trauma. This Community Impact program provides such children's services as tutoring, early Head Start and enrichment activities; preschool, adolescent, and adult literacy programs; ESL instruction; drug rehabilitation; AIDS support; and food kitchens. Preliminary data suggest lasting benefits from these interventions. The 6-week differentiation focus group interventions, based on the Lapidus Active Mastery Model, involve training in normative development and goal setting, spatial relations, emotional intelligence, cognitive enrichment, and guided discussion of tasks' applications. Preliminary study results indicate that these group interventions improved coping skills; competencies; family interactions; education readiness in young children; achievement in older siblings, parents and caretakers; and self-sufficiency in all participants. (JPB)