To evaluate parolee transition and adjustment, this study focused on parolees released in three North Carolina counties between July 1 and December 31, 1988. The final sample included 102 parolees who were contacted by mail and asked to participate in the study. After two followup mailings, 6 and 13 weeks after initial contact, 37 consented to an interview. A Parole Transitional Analysis Interview Schedule (PTAIS) was constructed, and community adjustment was measured based on subject responses to items on the PTAIS. Findings revealed that many parolees wanted a lifestyle change and reported being motivated when released. Community factors such as discrimination and individual factors related to finances, low self-esteem, and drug use appeared to hamper successful community adjustment. Of 34 respondents answering a question about parole agency purposes, 23 said the primary purpose was surveillance, 9 said to collect money, and 2 said to provide assistance. Five parolees, or 13.5 percent of the sample, had been returned to prison at the time of the study. The author concludes that the community adjustment process for parolees must be viewed as dynamic and as a function of interaction among institutional experiences, individuals and their home environment, structural barriers in the community, and the correctional system. 22 references and 5 tables