An analysis is presented of a review of research reports on the efficacy of direct instruction in fostering basic skills development. The review process began with a topical literature search using the ERIC database and conventional library methods. Articles and other documents were analyzed and abstracted into "Item Reports." Each of the items was judged against a set of pre-established criteria and ranked on a five-point scale. The collection of Item Reports was examined to identify issues which could be stated as hypotheses. Each hypothesis became the subject of a "Decision Display." The Decision Displays were created by sorting the Item Reports into those which supported or negated the hypothesis. A Summary Report was then generated from consideration of the Decision Displays and the file of Item Reports. For this analysis, 33 relevant documents were selected for examination, from which four hypotheses emerged: (1) Use of the Distar (Direct Instruction System for Teaching and Remediation) programs with disadvantaged, primary level children has a positive effect on basic skills achievement and affective development; (2) Use of the teaching strategies and behaviors collectively termed "direct instruction" has a positive effect on the basic skills achievement of primary and upper elementary school children; (3) Higher achievement results when skills and concepts are taught directly than when they are presented indirectly or not at all; and (4) Direct instruction is inappropriate for some educational settings, especially those involving older students and learning activities beyond basic skills development. The research documents strongly supported these hypotheses. This report includes the Item Reports on the 33 documents, the Decision Displays justifying the formation of the hypotheses, and an interpretive summary of findings. Recommendations are offered based on the findings and conclusions. (JD)