Computer assisted instruction programs for adult literacy are becoming more prevalent in learning centers, community organizations, and in schools across the country. Computers are also being used to curb illiteracy at the source, in elementary and secondary schools, in an effort to reduce dropout rates. Two IBM (International Business Machines) literacy software programs have been particularly successful in providing literacy education for both children and adults. The "Writing to Read" program is designed to teach the basic skills of reading and writing to kindergartners and first graders, and the "Principle of the Alphabet Literacy System" (PALS) interactive videodisc program is aimed at functionally illiterate adolescents and adults. Both programs are phonetically based and offer multimedia instructional experiences through the use of computer graphics and programmed audio instruction. A Spanish language version of "Writing to Read" called VALE (Voy A Leer Escribiendo), has proven equally effective in teaching Hispanic children how to read and write in their native language. Students are engaged in independent study and proceed as quickly as their understanding allows. Effective computer software can restore the excitement of learning as well as upgrade the work force through literacy training. (13 references) (DB)