AN OBSERVATION TEAM OF SPECIALISTS VISITED SITES OF 35 SEPARATE ADULT EDUCATION PROGRAMS IN MANY STATES. INTERVIEWS WERE CONDUCTED WITH ADMINISTRATORS, TEACHERS, AND ILLITERATES. MATERIALS WERE EXAMINED, CLASSROOM INTERACTIONS WERE OBSERVED, OBSERVATIONS WERE MADE OF TEACHER AND STUDENT BEHAVIOR, AND ANALYSES WERE MADE OF THE FUNDAMENTALS UNDERLYING TEACHING METHODOLOGY. THE REPORT WAS PRESENTED IN THREE PARTS. PART ONE REPORTED ON THE OBJECTIVES, THE STUDENTS, THE TEACHERS, AND MATERIALS ON THE VARIOUS PROGRAMS. PART TWO EVALUATED THE INSTRUCTIONAL MATERIALS. PART THREE REVIEWED RESEARCH ON INSTRUCTIONAL MATERIALS, TESTS, AND METHODS. CONCLUSIONS REPORTED WERE (1) ADULT LITERACY EDUCATION PROGRAMS MUST HAVE CAREFULLY DEVELOPED TEACHER TRAINING PLANS, (2) THE PROGRAMS MUST FIELD TEST THE VARIOUS INSTRUCTIONAL MATERIALS TO BE USED, (3) THERE IS A NEED TO IDENTIFY THE FUNCTIONALLY ILLITERATE SEGMENT OF THE ADULT POPULATION. FURTHER RESEARCH WAS INDICATED IN THE AREAS OF LEARNING, MOTIVATION, TEACHING METHODS AND TECHNIQUES, AND TEACHER TRAINING. (RS)