Intended to help reading teachers develop and demonstrate mastery of diagnostic or remediation skills prior to or with application in a real classroom, this handbook provides simulated materials for use within a course or staff development program to supplement lectures, discussions, readings, demonstrations, and films. Following an introduction, the six sections of the handbook contain the following: (1) a description of the components of the kit, (2) a discussion of the whole language reading theory and its application, (3) procedures for using the materials described, (4) procedures for rereading miscue inventory, (5) diagnostic procedures, and (6) instructional procedures. (HTH)