Work on the Lincoln Training System (LTS) conducted during the period covered by this report focused upon 1) applications research for the LTS and 2) on the implementation of a series of experimental design studies. Test results showed that pairs of students could share terminals, with feedback and remediation based on only one student's response, thus permitting more students to be trained at lower costs. Student data summaries for 1) the exact path of each student; 2) the distribution of frame transfer at each frame; and 3) the time per frame, proved valuable for lesson analysis and the evaluation of alternative instructional strategies. The microfiche selector/reader breadboard was completed and studies were begun involving alternative audio readers, x-y positioning schemes, and fiche manipulation systems. Data from these studies will serve as the basis for decisions regarding the subsystems of LTS-4. Finally, it was determined that the proposed self-processor for LTS-4 was capable of complete reduction of the raw data stored on film, and that the film data channel more than adequately met the system's requirements. (Author/PB)