A study investigated software choices of graduate-level clinicians in a university reading clinic to determine computer use and effectiveness in literacy instruction. The clinic involved students of varying ability, ages 7-12, using 24 Power Macintosh computers equipped with "ClarisWorks,""Kid Pix,""Student Writing Center," and "Netscape Navigator" software. Computer lab observations, examination of clinicians' lesson plans, and software evaluation forms showed that for computerized instruction: (1) follow-through was a lower priority; (2) time-on-task was less targeted; (3) computers were sometimes chosen for motivational value only; (4) software was used for drill and practice word recognition instruction, word processing, electronic books, Internet, and one-on-one interaction; and (5) hardware use resulted in frustrations because of unfamiliarity and availability issues. Findings suggest: teachers were moderately technically competent, were eager to use computers, and needed more time to familiarize themselves and plan; skill and grade level of software needed to be pinpointed with a corresponding list; and motivational stimulation regarding computers should be carefully determined. (Contains 11 references and 2 figures of data; an appendix lists 61 software titles available at the clinic.) (EF)