THE WALDEN CENTER FILLS A GAP IN AVAILABLE PROFESSIONAL SERVICES WITHIN A COMMUNITY-BASED GROUP LIVING SOCIAL SERVICES SETTING. THE REPORT COVERS THE RATIONALE FOR WALDEN'S EXISTENCE, THE FUNCTIONING OF WALDEN IN CONJUNCTION WITH OTHER DIAGNOSIS AND CRISIS-EQUIPPED AGENCIES IN OMAHA, AND THE DEVELOPMENT OF THE PROGRAM. ALSO INCLUDED IS AN ANALYSIS OF DATA AVAILABLE FROM WALDEN'S SECOND YEAR OF OPERATIONS (SEPTEMBER 1, 1972 TO AUGUST 31, 1973), THE PLACE OF WALDEN IN THE YOUTH SERVICES SYSTEM, AND FINDINGS AND RECOMMENDATIONS CONCERNING THE FUTURE DEVELOPMENT AND CONTINUATION OF THE WALDEN CRISIS AND DIAGNOSTIC CENTER. THE APPENDIX INCLUDES LETTERS OF COMMENT FROM VARIOUS NEBRASKA AGENCIES ON WALDEN, COPIES OF ALL FORMS UTILIZED BY THE CENTER, AND RESUMES OF THE STAFF. (AUTHOR ABSTRACT)...KAP