This is the second annual report of the Army Research Institute's (ARI) basic research program. It describes the current focus of the program and the individual research efforts sponsored within each of the four principal thrust areas: ability assessment; instructional technology; cognitive processing limitations; and intelligent systems. In addition, this volume surveys prior years of this effort, outlining the changing size and scope of the program and some of the more significant accomplishments from 1972 to 1984: (1) leader match for army training; (2) decision making in diagnostic skills; (3) cognitive learning strategies; (4) problem complexity and troubleshooting strategies; (5) computer adaptive testing; (6) methodology for intelligent computer adaptive instruction; (7) identification of research needs for human factors; (8) human components in combat simulation; and (9) discrete levels of human capacity in defense forces readiness and combat. A nine-page bibliography, arranged by topical areas, of all research completed from 1972 to date is included. Two indexes provide access by principal investigator and research organization. (PN)