This analysis of a report on compensatory education prepared by the National Institute of Education (NIE) reviews special compensatory education services for participating students. The report reviewed describes student selection procedures, recipients of compensatory services, and types of services provided by compensatory education programs. The discussion includes both Title I programs and similar programs operated by 16 states. The findings are based on a survey of 100 school districts, on followup studies of auxiliary services in 18 of these districts, and on a comparison of regular instruction and compensatory projects in 12 special demonstration school districts. The NIE discussion regarding Title I is limited to the services purchased through basic grants to school districts. (Author/AM)