Serial attention models of eye-movement control during reading were evaluated in an eye-tracking experiment that examined how lexical activation combines with visual information in the parafovea to affect word skipping (where a word is not fixated during first-pass reading). Lexical activation was manipulated by repetition priming created through prime-target pairs embedded within a sentence. The boundary technique (Rayner, 1975) was used to determine whether the target word was fully available during parafoveal preview or whether it was available with transposed letters (e.g., "Herman" changed to "Hreman"). With full parafoveal preview, the target word was skipped more frequently when it matched the earlier prime word (i.e., was repeated) than when it did not match the earlier prime word (i.e., was new). With transposed-letter (TL) preview, repetition had no effect on skipping rates despite the great similarity of the TL preview string to the target word and substantial evidence that TL strings activate the words from which they are derived (Perea & Lupker, 2003). These results show that lexically based skipping is based on full recognition of the letter string in parafoveal preview and does not involve using the contextual constraint to compensate for the reduced information available from the parafovea. These results are consistent with models of eye-movement control during reading in which successive words in a text are processed 1 at a time (serially) and in which word recognition strongly influences eye movements. (Contains 3 tables, 2 figures and 1 footnote.)