This report poses four important questions for states about their students' readiness and answers these questions using data from ACT and College Board reports. Clarifying the issues of college readiness that confront member states of the Southern Regional Education Board (SREB) should provide states with tools for current and future policy decisions. To the first question, "Are SREB states improving their ACT and SAT scores?," the report responds yes, scores have improved and the proportions of students taking these tests have increased. The second question, "Are SREB states closing achievement gaps?," must be answered "no," SREB states have not made much progress in closing achievement gaps between Black and White, and Hispanic and White, students. "Are students in SREB states being sufficiently prepared for college?" No, many SREB states are not yet successful in preparing a sufficient proportion of their students for college. The final question, "How do students in SREB states compare with students nationally?," must be answered by saying that a few SREB states rank high in student performance, but students in many SREB states are scoring considerably below their counterparts. SREB states have made progress, but substantial work remains to be done. (Contains 8 tables and 24 references.) (SLD)