This project has three main goals: Thin Films Studies, Preparation of Graded Porous Substrates and Basic Electrical Characterization and Testing of Planar Single Cells. During this time period substantial progress has been made in developing low temperature deposition techniques to produce dense, nanocrystalline yttrium-stabilized zirconia films on both dense oxide and polymer substrates. Progress has been made in the preparation and characterization of thin electrolytes and porous LSM substrates. Both of these tasks are essentially on or ahead of schedule. In our proposal, we suggested that the ZrO(sub 2)/Sc system needed to be considered as a candidate as a thin electrolyte. This was because microcrystalline ZrO(sub 2)/Sc has a significantly higher ionic conductivity than YSZ, particularly at the lower temperatures. As a result, some 0.5 micron thick film of ZrO(sub 2)/16% Sc on an alumina substrate (grain size 20nm) was prepared and the electrical conductivity measured as a function of temperature and oxygen activity.