This booklet is Part II of a two-part manual for teaching reading through the Systems Approach to Individualized Instruction (SAII) program developed at Manzanita Elementary School in Josephine County, Oregon. Part II describes the SAII program in detail and is intended for use by elementary teachers as a day-to-day reference for teaching reading by the SAII method. The SAII program uses basically the same approach for grades 1 through 6, although the routine is usually more challenging for first graders to master. Chapters 1 through 5 present an overview and outline of the basic SAII system, and chapter 6 focuses on the unique requirements of the first-grade program. The appendix contains a hierarchy of reading skill activities, sample instructional materials and tests, sample planning and record-keeping forms, and an instructional flow chart. (Author/JG)