Volume I of this report (AL 001 821) is a general description of the project, background and related research, the methods employed, and a linguistic analysis of the structural differences in grammar and phonology between non-standard Negro English (NNE) and Standard English (SE). Volume II is directed to a wider range of readers and deals with the differences in the uses of NNE and SE. Included here are a description of the peer groups and vernacular culture studied in Volume I, a description of NNE speech events and group standards of excellence, culture, the subjective evaluation of language differences by adults, and overt attitudes towards language. It is concluded that NNE is a dialect of English with certain extensions and modifications of rules found in other dialects. The verbal capacities of ghetto children are much greater than those found by other investigators. While structural conflict between NNE and SE is one factor in reading failure, functional conflict (cultural conflict between NNE and SE value systems expressed as different language norms) is the chief problem. It is recommended that children learn to read by reading back their own words, that young, male "auxiliary teachers" be used to mediate between teachers and students, and that the teaching of SE in the early grades be linked to the value system the NNE student brings to school. (Author/JD)