Significant improvements were made toward producing uniform support tubes and reducing energy requirements for the initial processing stage. Interconnection material thermal properties were improved to match those of other fuel cell components. Air bubbles in the air electrode filter-dip slurry were eliminated, since this was found to reduce the incidence of air electrode radial cracking. The EVD reactor equipment and process were modified and good interconnection and electrolyte layers are being produced on 12-cell batches. The three-cell life test is still stable after 5500h of operation at 1000/sup 0/C. Longer time Mn diffusion studies in single and polycrystalline ZrO/sub 2/(Y/sub 2/O/sub 3/) yielded diffusion coefficient values consistent with those measured in shorter tests. Mn diffusion studies in EVD ZrO/sub 2/(Y/sub 2/O/sub 3/) showed the diffusion coefficient value to be intermediate between Mn diffusion in single and polycrstalline ZrO/sub 2/(Y/sub 2/O/sub 3/). Kinetics of La/sub 2/Zr/sub 2/O/sub 7/ formation at the interface between La/sub 2/O/sub 3/ and ZrO/sub 2/(Y/sub 2/O/sub 3/) were studied. Dual atmosphere testing of Inconel 600 provided data on the effects of hydrogen and high-temperature operation. RF inductive-loss scanning proved to be a satisfactory method of detecting cell defects nondestructively. Preparation of the dedicated five-station cell test facility was completed. Submodule and generator designs were updated through new cell and component data input. Finally, fabrication of the submodule continued with mockup tests of several components being used to predict their in-situ performance.