During the last 15 years, there has been a steady increase in the popularity and sophistication of the confirmatory factor analysis approach to multitrait-multimethod (MTMM) data. However, important problems exist, the most serious being the ill-defined solutions that plague MTMM studies and the assumption that so-called method factors primarily reflect the influence of method effects. In three different MTMM studies--by T. M. Ostrom (1969), B. M. Byrne and R. J. Shavelson (1986), and H. W. Marsh and R. Ireland (1984)--ill-defined solutions were frequent and alternative parameterizations designed to solve this problem tended to mask the symptoms instead of eliminating the problem. More importantly, so-called method factors apparently represented trait variance in addition to, or instead of, method variance for at least some models in all three studies. Further support for this counter interpretation of method factors was found when external validity criteria were added to the MTMM models and correlated with the trait and so-called method factors. This problem invalidates the traditional interpretation of trait and method factors and the comparison of different MTMM models. A new specification of method effects as correlated uniqueness instead of method factors was found to be less prone to ill-defined solutions and, apparently, to the confounding of trait and method effects. Two tables conclude the document. (Author/TJH)