Classical cognitive accounts of verbal short-term memory (STM) invoke an abstract, phonological level of representation which, although it may be derived differently via different modalities, is itself amodal. Key evidence for this view is that serial recall of phonologically similar verbal items (e.g., the letter sounds "b", "c", "g", and "d") is worse than that of dissimilar items, regardless of modality of presentation. Here we show that the effect of such phonological similarity in STM can be fully accounted for by the joint action of articulatory similarity, leading to errors in speech planning processes, and acoustic similarity within auditorily presented lists, which modulates their perceptual organization. The results indicate that key evidence used to argue for the existence of abstract phonological representation can in fact be fully accounted for by reference to modality-specific perceptual and motor planning mechanisms. (Contains 2 figures and 1 footnote.)