The purpose of the study contained in this report is to provide research and design data for the Southwest Regional Laboratory (SWRL) Mod 2 Reading Program, a four-year program (K-3) for teaching reading skills to primary-grade children. The report is divided into two volumes. Volume one describes sequencing and methodology, and the specific rule sequences developed for the Mod 2 Reading Program; volume two lists all words (including irregularly spelled words and proper names) sequenced by and within the rules. The design of the program is based on the premise that pupil knowledge of the phoneme grapheme correspondences of English orthography and pupil ability to apply these correspondences are essential. A set of correspondence rules was developed from a 9000-word lexicon to systematically organize instruction for beginning reading. With the aid of computer sorting procedures, rules and rule exemplars were sequenced according to criteria of productivity, regularity, generalizability, and phonological equivalence. (Author/RB)