Rheological measurements of the lignite slurry dried at 300/sup 0/C were conducted for solids loading ranging from 43 to 60% in a capillary viscometer. The slurries generally exhibited shear thinning behavior at high shear rates and Newtonian behavior at lower shear rates. At 60% solids, the slurry was still pourable and appeared to be yield-pseudoplastic, and nearly Newtonian at shear rates of 200 to 500 sec/sup -1/. Characterization of physical properties for the subbituminous coal slurries was completed, which showed lower ash and moisture levels than for the lignite slurries. However, opposite to the trend observed for the lignite slurries, the residual moisture in the coal from the subbituminous slurries was higher for the lower process temperature. Installation of the reactor has been nearly completed in the test bay. Investigations of methods to study slurry dispersion, droplet size, droplet/particle velocity and trajectory continued. Apparatus necessary for spray isolation and dispersion measurement has been designed. Demonstration tests with air/water sprays indicate that the spray isolation equipment will be adequate. A review of commercial and laboratory slurry nozzles was completed. Arrangements to receive at least one commercial atomizer were made for possible use, in addition to the slurry nozzle developed at this laboratory, in the spray and combustion tests. 10 references, 7 figures, 2 tables.