This document is the Interim Report on future directions for Federal support of research and development in high performance computing, communications, information technology, and the Next Generation Internet. This report provides a more detailed explanation of the findings and recommendations summarized by the President's Information Technology Advisory Committee (PITAC) on June 3, 1998. The report is divided into five main sections. The first section identifies and discusses 10 critical information technology transformations that will enable identification of common information technology challenges critical to the Nation's future and provide a framework for PITAC's recommendations for Federal research investments. These transformations will affect how citizens: communicate; store and access information; become healthier and receive proper medical care; learn; conduct business; work; design and build things; conduct research; sustain a livable environment; and manage government in the next millennium. The second section focuses on setting Federal R&D priorities and presents these findings, followed by recommendations: total Federal information technology R&D investment is inadequate; and Federal information technology R&D is excessively focused on near-term problems. Four areas of overall research agenda particularly need attention and must be a major part of a strategic initiative in long-term R&D: software, scalable information infrastructure, high end computing, and socioeconomic and workforce impacts. These areas are detailed in the third section, with findings and recommendations provided for each area. The fourth section focuses on support and implementation of new Federal research initiatives and presents recommendations for new and diverse modes of funding. The fifth section focuses on creating an effective management structure for new Federal research initiatives, and discusses managing long-term research; coordinating long-term research; and the review process. A sixth section presents the conclusion. (AEF)