Having used the apperception-interception method (AIM) of adult basic education (ABE) successfully abroad, World Education, with Office of Education funding and working at several American sites, developed a model of innovative ABE methods and materials for the United States, based on addressing learners' motivational problems. By using provocative photographs, problems critical to learners are identified in interviews and subsequently reflected in short, idiomatic, open-ended discussion units used to organize or supplement curriculum; social interaction is crucial. Learners, motivated to solve critical problems, desire basic skills education. Skill development modules provide systematic assistance to teachers, focusing on specific skills and providing skills development outlines, learning activities, and sample applications to particular AIM problem-stories. From the model, ABE teachers can tailor-make culturally relevant and situation-specific materials and develop their effectiveness with disadvantaged, undereducated adults. Background information, the methods-and-materials model evolution, results (a complete list of 101 photo-discussion units, with synopses) and implications comprise the report; appendixes include skills modules and evaluation information. The model is being transferred to selected State ABE staff development projects; a teacher's manual and instructional materials will be published; and a foundation has funded two New York City AIM projects. (AJ)