Good topic! I do believe that something spooky is going on around the topic of children and psychic development. To what degree it is a cover for other agenda such as mind control and/or disinformation, remains to be determined. However, there does seem to be activity in this regard in the world of the "New Age" and "cults".
Here is and old article that covers some of the basic information on the Monroe Institute. (Links embedded in the original):
www.mindcontrolforums.com/hambone/places.html
The Monroe Institute
P.O. Box 505, Lovingston, VA 22949. Click here to see their home page. Founded and directed by Robert Monroe from 1974 until his death in1995.
Had classified contracts with the U.S. Army Intelligence & Security Command (INSCOM) on orders by Gen. Albert Stubblebine. The Institute studied their hemi-synch techniques to see if they could enhance soldiers' performance and concentration. (
Emerson, Steven, Secret Warriors, G.P. Putnam's Sons, 1988, pg 103-4)
The primary area of research at the Monroe Institute involves using a binaural beat to cause different psychological effects. A binaural beat is created by using stereo headphones with each speaker emitting a slightly different frequency. The result is a tone at the frequency between the two, which allegedly causes the brain to "entrain" on the frequency, i.e. the brain waves regulate themselves to the same frequency.
The National Research council evaluated the Institute's claims that the method could be used to improve learning.
(National Research Council, Enhancing Human Performance, National Academy of Sciences, 1988, pg 111-4)
"..located near Charlottesville, Virginia. Bob Monroe, author of many books on Out of Body experiences, has long and close ties with the C.I.A. James Monroe, Bob's father, if I'm not mistaken, was involved with the Human Ecology Society, a C.I.A. front organization of the late 50's and 60's. The Monroe Institute has done research on accelerated learning and foreign language learning through the use of altered states of consciousness for the C.I.A. and other government organizations. Government interest in the more radical research going on at the institute remains only tantalizing speculation. Official classified document storage boxes have been seen at their mail-order outlet located in Lovingston, VA."
(
Porter, Tom, Government Research into ESP & Mind Control, March, 1996)
The Monroe Institute trained the government viewers from Ft. Meade in out of body experiences. Courtney Brown also went through this training, which involves using the Institute's Hemisync tapes. These tapes, which work by using a binural beat to entrain brain waves, caused Brown to feel that he left his body and communicated with aliens.
(Brown, Courtney, Cosmic Voyage, Dutton, 1996)
Joseph McMoneagle trained at the Monroe Institute (although he fails to mention any connection to the military). According to him, the Hemisynch tapes were used during the "cool down" period before the remote viewing sessions, to relax the viewer.
(McMoneagle, Joe, Mind Trek, Hampton Roads, 1993)
Interestingly, Michael
Persinger uses the Hemisync tapes in his work which debunks paranormal experiences, especially UFO abductions.
The Monroe Institute's involvement with the Army began in 1977, when Skip Atwater, at the suggestion of his mother, visited the institute. He spread the word to others in the remote viewing program, and soon others attended, including John Alexander, Joe McMoneagle, and Albert Stubblebine. Soon, Stubblebine began sending his officers there, under a program called "Rabid Advancement Personal Training".
(Schnabel, Jim, Remote Viewers: The Secret History of America's Psychic Spies, Dell, 1997, pg 294-7)
In 1984, an unnamed INSCOM lieutenant with a history of mental illness suffered a psychotic episode while under the influence of the Hemisynch tapes at the institute. The officer was institutionalized at Walter Reed, and the event was the final straw that pushed Albert Stubblebine's resignation.
(Schnabel, 1997, pg 315-6) 
I dont use it regularly, but from time to time binaural beats can be handy. I make them myself, theres a program for linux called Gnaural (free, open source etc...) and one not free, not open source, shareware program Brainwave generator, BWGen, for Windows. I recommend binaurals for anyone interested in brain workings and states of mind. But about Monroe Institute, I know nothing about.