Features of a model of reading that is both sensitive to individual differences and consistent with the assumption that reading processes are interactive are discussed in this report. A description of how this model accounts for individual differences in reading skill suggests three types of reading problems: slow word decoding, slow sentence computing, and lack of use of context. Several studies of contextual influences on word identification are described, including research on story discourse, context-type research, and graphical variations (letter segment deletion). The conclusion notes that the research indicates that at least one of the three types of reading problems suggested at the beginning of the chapter can be ruled out--children do not seem to have severe problems using context in word identification. (MKM)