This subcontract report entails investigation of engineering improvements in the performance and stability of solar cells in a systematic way. It consists of the following four tasks: Task 1-Materials research and device development; Task 2-Process improvement directed by real-time diagnostics; Task 3-Device loss mechanisms; and Task 4-Characterization strategies for advanced materials. The real-time spectroscopic ellipsometry (RTSE) multichamber is near completion, and trial depositions with a-Si:H will begin shortly. Construction of the new dual beam photoconductivity (DBP) apparatus has been completed, and the new capabilities are being used in studies on a-Si:H thin films. A new apparatus is being constructed for in-depth studies on the mechanisms limiting the performance of a-Si:H solar cells and the two track studies (cells and films) of the Staebler-Wronski Effect.