This report examines the teacher-reported early literacy behaviors of 2,759 preschool children who participated in a state-supported, early intervention preschool program. Preschool teachers (N = 240) completed the Literacy Competence Checklist for all children in their classes. Teachers reported growth in childrens literacy behaviors from Fall to Spring and shifts in commonly displayed behaviors from general verbal language in the Fall to word-level skills in the Spring. Teachers ratings of verbal comprehension and letter knowledge skills in the fall predicted whether they thought individual children would have difficulty learning to read in kindergarten. The findings showed that teachers see young children as developing pre-literacy skills rapidly, even those children who are expected to have difficulty in the primary grades. (Contains 54 references.) (Author/KB)