This publication explores adult literacy and numeracy. In particular, it draws on major insights from research conducted during 2003 and 2004 for the Adult Literacy National Project funded by the Australian Government through the Department of Education, Science and Training. Key messages include: (1) Literacy and numeracy skills are shaped by social, cultural and technological developments--Therefore the definition of literacy will change with the times, as will approaches to fostering literacy and numeracy skills; (2) The challenge is not confined to those with poor basic skills but extends to all people trying to understand new forms of communication and information as they take on different roles in life and work; and (3) People with limited literacy can lead very successful lives--They can achieve stable employment, economic self-management and academic success. In doing so, they often have to be particularly determined and able to make clever use of networks and technologies. [This document was funded under the Australian National Training Authority (ANTA) Adult Literacy National Project by the Commonwealth through the Department of Education, Science and Training (DEST).]