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North Dakota State University (NDSU) was the recent recipient of a Bush Grant for providing support and training for NDSU faculty. As part of that grant, the "Faculty Institute for Excellence in Learning" (FIEL) was created. The author was selected as a FIEL "Fellow" and subsequently submitted a proposal and received funding to apply a problem-based learning approach to the departmental capstone course. During the summer of 2001, the capstone course was revised and restructured to meet the primary objective of the course. The basic philosophy, format, evaluation and assessment of the course came into question. The contents of this paper: (1) describe some of the philosophical questions that had to be addressed; (2) provide an overview of problem-based learning; (3) explain the revised course content and delivery systems; and (4) provide an explanation of the techniques used to evaluate student work and provide course assessment.