The study was conducted over a 3-year period in response to a request from the Illinois House of Representatives. Data were collected via interviews with several States' law enforcement officials, known child molesters, child pornographers, prosecutors, community workers, and others. Data were also collected via reviews of mass media reports and establishment of several 'front' enterprises that might appeal to exploiters of children. The front enterprises included a summer camp, a confidential film development service, and purchase and sale of photographs and films. Operation of these enterprises resulted in several arrests. Study results indicated that, except in rare instances, children are not being transported or used in any organized way for prostitution and that Chicago is not a transfer point for this activity. Parents rarely offer their own children to film producers. No firm figures are available on the number of sexually abused children. Organized crime is not involved in child prostitution, although it was involved in distribution of child pornography prior to passage of Federal legislation outlawing child pornography. Early sexual experience or sexual abuse is correlated with prostitution. Runaways, often from abusive homes, tend to become involved in child pornography and child prostitution. Child molesters usually come into contact with children through legitimate activities. Detection of sex crimes against children is difficult because of lack of police training and the hidden nature of the problem. More aggressive enforcement, better screening of potential youth group employees, more careful monitoring by parents, and treatment of victims are recommended. Photographs, letters from respondents to front enterprises' advertisements, lists of adult bookstores in Chicago, a glossary, and a list of approximately 70 readings are included. Appendixes present the text of child pornography statutes, reporting forms, and related materials.