A study of the effects of modality preferences and teacher competencies on reading achievement was undertaken using three different programs for initial reading instruction. The major purposes of the study were to determine differences in reading achievement when first grade children are placed in programs congruent or noncongruent with their sensory modality preferences, to explore the effects of teacher competence on differences in achievement when pupils have congruent or noncongruent placement, to validate modality preference assessments, and to modify the kindergarten assessment battery. Subjects were 107 first grade pupils from a multi-ethnic, multilingual, multicultural, economically disadvantaged Hawaiian community. Data were obtained from kindergarten assessment of readiness and first grade criterion measures of reading achievement, and learners were identified according to auditory, visual, and no modality preference. Results indicated that pupils whose modality preferences were congruent with the primary instructional focus of initial reading programs achieved significantly higher scores on all measures of initial reading behavior than did pupils whose modality preferences were not congruent with the instructional focus. Also, experimental placement was more effective with teachers of greater competency, and the clinical modality decision procedures were validated statistically. (Implications for educational practice are included.) (DF)