Summary: Fundamental studies in support of the alloy design work are complete except for the experimental determination of the diffusion of oxygen in alloy-doped non-stoichiometric ZrO2. Over 100 oxidation runs have now been made on samples of ZrO2 doped with 1 mole percent of the oxides of Al, Y, Fe, Cr, and Ni. The first round testing of 31 alloys is now essentially complete. Analysis of the steam corrosion rate and hydriding raw data taken at 300, 400, and 500 degrees C indicates that Zr-Cr and Zr-Cu-Fe alloys show the most promise for development for service in steam over the entire temperature range 300-500 degrees C. Maximum resistance to corrosion hydrogen embrittlement requires high initial ductility and thus low, perhaps less than ~2.5 a/o total alloy content. For any composition, susceptibility to hydrogen embrittlement depends on crystallographic texture of the component; under certain circumstances hydrogen embrittlement may be high anisotropic. The second-round testing of 10 selected Zr-Cr and Zr-Cu base alloys is now about 50% complete. Three alternate fabrication schedules were evaluated; and the preliminary results indicate that the Zr-Cu alloy tested is less sensitive to heat treatment than is the Zr-Cr alloy tested. Raising the final alpha annealing temperature …