The Beginning Teacher Evaluation Study (BTES), Phase II, was a research project on effective teaching behavior--what teachers do that significantly affects what and how pupils learn. The purposes of Phase II were to (1) develop an assessment system for measuring teacher and pupil behaviors and other factors which could influence each of them and their interrelationships and (2) generate hypotheses about the interrelationships among teacher and pupil behaviors and related factors. Forty-one second grade and 54 fifth grade experienced teachers participated in the study. In this volume of the final report, teacher performance on the Diagnostic Film Test was analytically related to teacher performance on other reading and reading related tests, to observed teacher responses to pupils in their classrooms, and to observed and measured pupil reading performances. The results are discussed. The Diagnostic Reading Test was standardized, utilized a real life situation, and was criterion referenced. It was felt that the instrument had potential as both a training and selection tool and was worthy of further research and development. (RC)