Results of comprehensive needs assessments conducted in 1980 and 1988 were compared relative to appropriate physical education for handicapped students as mandated by PL 94-142. A direct, self-report methodology was used covering various dimensions of teacher needs. Although there was a significant improvement of the teachers who had served on a multi-disciplinary staff for developing Individualized Education Programs, teachers' misunderstandings of PL 94-142 in 1980 were confirmed in 1988. While there was greater interest in teaching handicapped students, it was no better than "neutral/mixed". A majority of the teachers in 1980 and 1988 indicated a general need for assistance in motor behavior assessments. A majority of the teachers received encouragement and support from their administration in 1980, however, in 1988 there was a decline in support. Both in 1980 and 1988, over 75 percent of the teachers believed that handicapped students are excluded from participation in physical education due to the "nature of the handicap" and "functional ability." Results confirmed that teachers still lack the instructional capacities necessary to conduct physical education in the least restrictive environment. (JD)