This validation study involved 30 programs, 90 classrooms and 180 observations of infant, toddler, and preschool classrooms utilizing the ECERS/ITERS and the SKECPQI instruments. Six trained observers collected the data over a two-month period. The analyses clearly demonstrated that the new SKECPQI instrument is a valid and reliable measure of program quality. PQI #2 clearly showed it predictive power in this study. The SKECPQI and PQI #2 correlated very highly with the ITERS and ECERS. The SKECPQI appears to correlate more highly with regulatory compliance violations than the ECERS or ITERS. The ceiling/plateauing effect is not as evident with the SKECPQI as it is with ECERS/ITERS. The Regulatory Compliance Scale (RCS) is a better sorter for regulatory compliance than the violation data. There is a good deal of internal consistency within the SKECPQI Tool just as it is with the ERSs. The Regulatory Compliance Theory of Diminishing Returns was validated in comparing RCS with ECERS/ITERS. Both the SKECPQI Scale and the Regulatory Compliance Scale are introduced as new improvements to measuring quality and regulatory compliance. (author abstract)