The implementation of the National Literacy Strategy (NLS) began in English primary schools at the start of the autumn term, 1998. It was intended to bring about "a dramatic improvement in literacy standards," so that, by 2002, 80% of all 11 year olds should reach level 4 in English at the end of Key Stage 2 national curriculum tests. This is the third report on the NLS published by the Office for Standards in Education (OFSTED). The NLS continues to have a major impact on the teaching of English in primary schools and on the content of initial teacher education courses. This has had a positive effect on the standards of pupils' reading, both of boys and girls. By contrast, the impact of the NLS on writing has been much more limited. The report lists other main findings; points for action; and standards of achievement and pupils' progress. It also discusses the quality of teaching of literacy; other issues such as the teaching of handwriting and the teaching of literacy to pupils with special educational needs; the impact of intervention strategies; leadership and management; and training and support. (PM)