IN AN EFFORT TO CLARIFY THE QUESTION OF THE VALUE OF ABILITY GROUPING, THE POSSIBLE INFLUENCE OF LEVEL OF READING GROUP PLACEMENT ON PRIMARY STUDENTS ENJOYMENT OF READING AND SELF-PERCEPTION AS READERS WAS STUDIED IN THREE RANDOMLY-SELECTED FIRST-, SECOND-, AND THIRD-GRADE CLASSROOMS IN A CORVALLIS, OREGON, SCHOOL LOCATED IN A LOWER-MIDDLE TO UPPER-MIDDLE SOCIOECONOMIC AREA. STRUCTURED INDIVIDUAL INTERVIEWS WERE HELD WITH ALL PUPILS IN THE THREE CLASSES IN SEPTEMBER, 1966 (N=71) AND JANUARY, 1967 (N=64) TO DETERMINE (1) IF PRIMARY CHILDREN PERCEIVE THE LEVEL OF THEIR READING GROUP PLACEMENT, (2) IF ACCURACY OF PERCEPTION INCREASES AS CHILDREN ADVANCE THROUGH THE GRADES, (3) IF ACCURACY OF PERCEPTION OF PLACEMENT IS RELATED TO LEVEL, (4) IF CHILDREN IN HIGH READING GROUPS REPORT GREATER ENJOYMENT OF READING THAN CHILDREN IN LOW READING GROUPS, AND (5) IF CHILDREN WHO HAVE ACCURATELY PERCEIVED THEIR PLACEMENT LEVEL REPORT MORE ENJOYMENT OF READING THAN THOSE WHO OVER-ESTIMATE OR UNDER-ESTIMATE THEIR PLACEMENT. NO CLEAR-CUT EVIDENCE WAS FOUND TO SUPPORT EITHER PROPONENTS OR OPPONENTS OF ABILITY GROUPING AS THE METHOD OF ORGANIZING FOR PRIMARY GRADE READING INSTRUCTION, ALTHOUGH CERTAIN TRENDS IN ACCURACY OF PERCEPTION OF READING PLACEMENT WERE NOTED. TABLES AND REFERENCES ARE INCLUDED. THIS PAPER WAS PRESENTED TO THE AMERICAN EDUCATIONAL RESEARCH ASSOCIATION CONFERENCE (NEW YORK CITY, FEBURARY 18, 1967). (LS)