Phase II of a three-phase study developed a statewide overview of compensatory education in Texas and examined instructional practices and other variables related to a broad definition of student success. Questionnaires (developed in Phase I) received from 3,235 campuses (a 55% return) collected descriptive information on compensatory programs and performance data on selected students. Major findings were: (1) various estimates of total students served ranged from 650,000 to over 1 million; (2) eligibility for free/reduced price lunch is only marginally related to inclusion in a compensatory program and is not related to success; (3) exit rates are almost constant at 30% per year, but with no concomitant decline in number of students served, suggesting that selection measures and exit standards need reconsideration; (4) the overall impact of compensatory programs as measured by changes in test score distributions is positive but quite small; (5) compensatory students are retained at a higher rate than other students, suggesting that retention is being substituted for service; (6) on-level instruction is critical for success regardless of students' initial performance levels; (7) of all teacher variables examined, only frequent coordination between regular and compensatory teacher is positively related to success; and (8) parental involvement is positively related to success. This report contains 18 references, 65 data tables, the data collection instruments, and a glossary. (SV)