All papers have been peer-reviewed. Compound-nuclear reactions play a crucial role in nuclear astrophysics, nuclear energy, and national security. Although the concept of the compound nucleus dates back to the 1930s, a comprehensive, quantitative description of compound-nuclear reactions remains to be established. CNR* 2007 brought together experts in nuclear theory, experiment, and data evaluation to review current efforts aimed at understanding compound-nuclear reactions and to identify strategies for addressing open questions.