The scientific background and objectives of our ESO Key Programme are first recalled. A brief account of our research activities (observing runs at ESO and elsewhere, meetings, etc.) is then given. Preliminary scientific results are presented concerning 1) our observational database for highly luminous quasars and distant powerful radiogalaxies; 2) speckle observations of highly luminous quasars; 3) the photometric monitoring and 4) detailed studies of several known gravitational lenses; 5) optical observations of 3C and 4C radio galaxies and 6) of the well known Einstein ring MG 1131+0456