In a 3-part format, information is provided on the background of APL, applications of its research, and APL in the correctional setting. The background section describes the process of the research phase of the APL Project, including definition of functional competency and development of an assessment instrument of functional competency. The second section provides a brief history of the evolution of the APL life coping skills curriculum and Competency-Based High School Diploma Program (CBHSD) from the Project's research and national survey of adult functional competency. Instructional objectives include consumer economics, occupation knowledge, health, community resources, and government and law. The last section describes numerous APL programs beginning with the first one, the Windham School System in Huntsville, Texas. Modification of the program from the free world to a correctional setting included minimum adjustments such as role playing, simulation of grocery shopping through newspaper ads, interviews with potential employers, insurance agents, and so on. A 6-month follow-up survey showed more positive self-image, increased self-confidence, and improved attitudes. 6 references (Author abstract modified)