Direct observations by a legally trained observer were made of staff decisions concerning whether psychologically abnormal sex offenders committed as dangerous were still dangerous. The staff's decision was found to be influenced by the offender's willingness to admit guilt and responsibility and by his fantasies of future offenses. It was also affected by the offender's behavior in the institution, the duration of institutionalization, the seriousness of the offense committed, and changes in the situation to which the offender would be discharged. Anticipated benefits from continued exposure to the institutional program were also considered. The apparently necessary reliance upon a conceptualization of