This paper reports the effects on children, teacher candidates, and classroom teachers of a PDS-based initial certification course in the teaching of literacy. In this course, teacher candidates work with individual struggling readers on a range of literacy tasks, and the classroom teacher and university faculty member serve as course co-instructors. Results indicate that participating children grew more in literacy skills than non-participating children matched on beginning-of-year test scores. Candidates developed in their understanding of how assessment informs instruction, and moved from focusing on low-level skills to balancing their literacy instruction. Teachers found that serving as co-instructors resulted in significant, positive changes in their own practice, which likely contributed to children's learning. This collaborative project addresses NAPDS Essentials 2 and 8 in that university and school faculty cooperatively teach the course, preparing future educators within the context of the school community. It also tangentially addresses Essential 3, as participating teachers reported experiencing professional development as a result of their work.