Concern that Canadian Native illiteracy was being ignored or addressed ineffectively prompted this report, which includes a literature review, findings from a survey in several Native communities, and an overview of innovative practices and illustrative programs. The survey, conducted with 56 potential literacy learners from 8 geographically and culturally representative communities, focused on the perceived purposes and values of literacy, barriers to learning to read and write, and positive learning environments. The results indicated that the adult learners were motivated by a complex set of factors and past barriers, including personal, socioeconomic, and institutional factors. There was a strong preference for on-reserve, all-Native situations with a "watch then do" approach to learning. Analysis of the survey of successful programs suggested principles of effective Native literacy programs that can be organized into four categories: community-based, student-centered, experiential, and personal support. These principles are illustrated in a chart. Appended are a flow chart showing steps for conducting a survey, the survey form used, a list of the Native literacy programs surveyed, and a report on aboriginal literacy (the Snowdrift case study). Contains 57 references. (LB)