This report discusses various methodological issues confronted in the Reading Literacy Study conducted under the auspices of the International Association for the Evaluation of Educational Achievement (IEA) and issues relating to analysis of the data. The study analyzed in the report involved fourth- and ninth-grade students (9-year-olds and 14-year-olds) in 32 countries. Chapters in the report are: (1) "Issues in Sampling for International Comparative Studies in Education: The Case of the IEA Reading Literacy Study" (Keith Rust); (2) "Estimation, Sampling Errors, and Design Effects" (Edward Bryant); (3) "Handling Item Nonresponse in the U.S. Component of the IEA Reading Literacy Study" (Marianne Winglee and others); (4) "Assessing the Dimensionality of the IEA Reading Literacy Data" (Nadir Atash); (5) "Exploring the Possibilities of Constructed-Response Items" (Barbara Kapinus and Nadir Atash); (6) "Interpreting the IEA Reading Literacy Scales" (Irwin S. Kirsch and Peter B. Mosenthal); (7) Creating a Measure of Reading Instruction" (Marilyn R. Binkley and others); (8) "Hierarchical Models: The Case of School Effects on Literacy" (Steve W. Raudenbush); and (9) "Synthesizing Cross-National Classroom Effects Data: Alternative Models and Methods" (Steven W. Raudenbush and others). Contains 30 references. An appendix presents empirical Bayes and Bayes estimation theory for two-level models with normal errors. (RS)