A study examined the effectiveness of the Chapter 1 Corrective Reading Program, designed to provide supplementary reading and writing instruction to Chapter 1-eligible students from New York City nonpublic schools. During the 1988-89 school year, the program served a total of 7,943 students at 162 instructional sites. The total included 4,656 students receiving face-to-face instruction and 3,287 students receiving computer assisted instruction (CAI). In addition, 65 teachers, 780 parents, and 831 students participated in a new Parent Read-Aloud Program in grades one through three. Sources of data included program documents, data retrieval forms, observations of classes and staff development training workshops, interviews with program staff, and the results of standardized reading tests. Results indicated that students in all grades on all subtests in all modes of instruction achieved mean gains that were statistically significant and met the program criteria for success. Recommendations include: (1) vigorous promotion and expansion of the Parent Read-Aloud Program; (2) continuation of staff development as currently organized; (3) more training for CAI teachers on the content and features of software packages; (4) continuation of efforts to adapt software for use in settings where teachers are not physically present; and (5) evaluation of the CAI curriculum for first grade and, if necessary, change of the curriculum. (Fifteen tables of data are included; a brief description of Chapter 1 nonpublic school reimbursement services and the CAI teacher survey are attached.) (RS)