Papers presented suggest a variety of views aimed at helping the teacher become more proficient in using children's literature in teaching reading. David C. Davis points out the need for developing programs in which books are selected on their literary quality, not on tastes or personal points of view. William G. McCarthy discusses the contribution of role-playing using children's literature to achieving affective learning and developing values in children's thinking. Steps toward directed reading sequence--preparation, interpretation, and extension of skills and interests--to increase student comprehension considered by Virginia Mitchell. August J. Mauer talks about the use of paraprofessionals and the potentially creative opportunities involved in reading instruction. Teachers' use of films and children's literature, according to Jessie J. Dubois, can increase teachers' appreciation of picture books and provide ways to motivate students. Charles Nay examines insights in preschool reading and literature. The various considerations involved in the selection and reading of pictures are discussed by Jean B. Sanders. Claudia Baxter considers the use of literature in diagnosing reading needs and increasing the child's motivation for reading good books. Davis concludes the volume by examining five basic code systems necessary to reading instruction. (HS)