The 2008-2009 Annual Reading First Progress Report reflects on the final year of implementation for Round I schools and the third full year of implementation for Round II schools. This report focuses on the effect that Reading First implementation has had on selected schools across Nebraska with a special focus on vulnerable populations: English language learners, students of different ethnicities, special education students, and economically disadvantaged students. The report begins with a discussion of Nebraska Reading First student characteristics and how they have changed from last year. This section also discusses the treatment of clusters in Reading First evaluation, their characteristics, and the rationale for their use. The subsequent section is a longitudinal analysis of Reading First implementation. This section is divided into grade levels; within each grade, results are compared across clusters for valid comparison of like schools. It includes data on changes over the past five years for each grade in mean scores, risk levels, and finally achievement gaps for English language learners, economically disadvantaged students, and students of different ethnicities. Following this section is an analysis of teacher-based factors. First, the teacher surveys provide insight into the teachers' perception of Reading First implementation and efficacy. Next, the teacher logs offer a glimpse into a day of typical Reading First instruction. Finally, external evaluators' observations are discussed in terms of both teachers' in-class practices and teachers' reactions to Reading First. The last section is an overview the interviews that were conducted with Reading First coaches across the state. The discussion includes strengths and obstacles to Reading First implementation this year as distinct from previous years, as well as coaches' views on the sustainability of Reading First. (Contains 31 figures and tables.) [This report was produced by the Great Plains Institute of Reading and Writing, College of Education and Human Sciences, University of Nebraska Lincoln.]