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We entered the Royal George Theater to the sounds of Stevie Wonder. On stage, one could make out the set for ”Other People`s Money,” a play which addresses avaricious urges of the 1980s.

We were at a special workshop being held by Shakespeare Repertory. Its purpose was to show a couple of hundred Chicago school teachers how they might convince their students that Shakespeare was as hip as Prince.

Four women sat in folding chairs on the stage. Barbara Gaines, the company`s founder/artistic director, began by admitting, as might have some of the less insecure teachers and most of their students, that ”reading Shakespeare puts me to sleep. He was written to be performed.”

The teacher next to me uttered a ”Hmmmmmm” and jotted a note on the pad of paper he held in his lap.

Gaines went on: ”He wrote flesh and blood.” As she gave some examples, one could easily sense her passion. Gaines founded Shakespeare Repertory in 1986. It was the first professional Shakespeare company in town and its productions have won considerable critical acclaim. Last year it expanded its program to include student matinees and touring performances. This

”Shakespeare`s Greatest Hits” production specifically for kids was the next logical step.

There was a short break before the show, which would basically be the same show to which the teachers could bring their students Mondays, Tuesdays, Thursdays and Fridays at 10 a.m. and noon, Wednesdays at 10 a.m. and Saturdays at 2 p.m. through Nov. 9. (Tickets are $5-$6.50, depending on the number of students. Call 281-1878 for reservations.)

The sounds of the Rolling Stones ”Satisfaction” faded and the three witches from ”Macbeth” made their entrance, surrounding not a caldron but rather a grocery cart. Dressed as bag ladies, they disrobe to unveil slinky black gowns and start to entice Macbeth.

The teacher next to me, a man in his 50s with tape holding his glasses together, leaned over and whispered, ”What do you think?”

We nodded and smiled. He took another note on his pad.

We watched bits from ”Romeo and Juliet,” ”The Taming of the Shrew”

and other plays. The acting was fine, the staging crafty and the effect arresting. At the end of the hour-long show we looked through the program/

study guide, marveling at its lively thoroughness and trying to imagine the enjoyable enlightenment awaiting some of Chicago`s kids.

There is no denying that Shakespeare Repertory has crafted something amazing. ”Shakespeare`s Greatest Hits” is not only the sort of experience that might stir young hearts into appreciating the magic of Shakespeare; it also holds the potential to give them a lifelong passion for theater. And, perhaps, it can help kids understand that when it comes to jealousy, love, power, parental problems and other facets of their lives, MTV may not be the final word.