This study examined teachers' literacy and technology integration in their design of Internet-based lessons for Grade 1-6 students using a tool that scaffolds the design process to focus on Internet resources and reading strategies. Twenty-six teachers' lessons on a public database were analyzed for design orientation, goals, curricular integration, linked web site characteristics, reading strategies, and student response. Findings suggested that the tool shaped teachers' designs, supporting embedding of Internet multimodal resources and comprehension strategies in online lessons. Teachers' dominant design orientation was to provide students with a multimodal immersion experience to enhance understanding and engagement with literature or other subject-matter. The majority of teachers took advantage of reading strategies support, with more than one half customizing pedagogical agents. Few teachers used web evaluation or media literacies support. The potential for educative design tools is discussed. (Contains 4 tables and 2 figures.)