Through a participatory approach to adult basic education, a project was conducted to break the debilitating cycle of illiteracy that passes from low-income parents to their children. The approach included a family literacy book club designed to encourage parents and children to read together and to improve parents' literacy skills, interests, and confidence to serve as educators of their children. Training and guided reading experiences were provided to parents, and workshops were provided to the school faculty to develop appropriate literacy understanding and teaching skills. The program was highly successful in creating a participatory model of adult basic education. A progress checklist showed changes in students' writing activities, reading abilities, and their uses of strategies in task applications. An analysis of interactional strategies indicated that parents became more responsive to their children in reading and provided information on labeling, scaffolding, and extending learning beyond the printed page. The program also introduced parents to children's literature and facilitated discussion and values clarification among the parents. Video segments demonstrating the parents' work with children's literature and sample workbook materials were developed. (Contains 72 references, and an annotated list of 12 children's books is appended.) (KC)