A study measured the effectiveness of the computerized remedial reading program at Spartanburg Methodist College (South Carolina), and scrutinized potential instruments that might be used for placement and for exiting the program. Subjects were 48 college freshmen enrolled in a remedial reading class which consisted of 60% computer assisted instruction using the "Reading Efficiency System" (RES). RES comprehension and vocabulary tests were given to place students at appropriate instructional levels, and posttests to determine whether advancement to the next level was appropriate. The Nelson-Denny Reading Test was administered during the first week of class, at mid-term, and at the end of the semester (different forms) to monitor students' reading progress. Results showed the Nelson-Denny Reading Test to be inappropriate for this purpose, as its reliability correlations (which should have been high given testing-retesting of the same persons within relatively short periods of time) were low. RES comprehension and vocabulary pre- and posttests indicated significant improvements in students' reading skills. In general, students showed a grade-level gain of one or two years, thus indicating the effectiveness of the computerized reading class in teaching vocabulary and comprehension skills. (Five tables of data are included, and 17 references are attached.) (SR)