The PI's propose to continue the development of scanning x-ray microscopy and Gabor holography using undulator radiation at the National Synchrotron Light Source (NSLS). During the past three years, in collaboration with colleagues from the NSLS, Lawrence Berkeley Laboratory, and IBM, the researchers have developed, instrumented and commissioned the soft x-ray undulator beamline X-1A, along with the apparatus for scanning transmission microscope (STXM) and Gabor holography. The experimental program using these instruments has started. The initial operating experience points up several areas where further development will have a profound effect on the performance and usefulness of the facilities. Some of these relate to improved resolution and increased capabilities of the instruments, while others involve auxiliary studies to elucidate the range of applications for biological research. In addition, the PIs plan to participate in the user program, and more of their effort will be devoted to helping users during their early experiments.