This report is the second in a two-part series introducing an interactive activation model of context effects in perception. In the first part, a model for the perception of letters in words and other contexts was described and applied to a number of experiments. This second part applies the same model to a number of new experiments designed to assess the roles of direct and indirect evidence concerning the identity of a letter in an input string. The last section of the report proposes extensions of the model to the use of context in word recognition, pronouncing words and pseudowords, and speech processes such as spoken input, pronunciation tasks, and words embedded in sentential context. (AEA)