The development of conduct and emotional problems involves a complex interplay between environmental and genetic factors. The child-rearing environment contributes to this process. Gross deviations, such as those seen in abusive or neglectful homes, or where the parent has serious mental health problems, have been shown to contribute to the initial onset and persistence of emotional and conduct problems during childhood and adolescence. In this chapter, the authors consider whether, in their sample, conduct, emotional, and peer-relationship problems are in fact truly independent of institutional deprivation. They find that they are not. (Contains 5 tables and 4 figures.)