The guide provides adult literacy teachers with background information in adult learning and the performance-based approach to literacy education. The first section reviews theory and research on adult learning, including the factors affecting learning (language background, expectations, gender, learning styles and modes, age and health, educational background), the characteristics and needs of literate and non-literate learners, the differences between teaching English to native speakers and to non-native speakers, and specific classroom techniques for increasing both motivation and retention. The second section outlines the rationale for performance-based literacy instruction and reviews the use of the whole language approach, sight words, and phonics; the role of document literacy (or form language) for this population; numeracy; and employment-related content for beginning readers. Supplementary information is provided in appendixes. (Contains 26 references.) (Adjunct ERIC Clearinghouse on Literacy Education) (MSE)