We present the 1994 annual report on research efforts of the San Diego Supercomputer Center's Applied Network Research group (ANR). Our projects included collaboration with other researchers across the country. This year, we continued our research on network analysis, modeling, engineering, as well as advanced network technologies including the CASA gigabit testbed. Our research topics include issues of network access, the transition of the Internet environment as the NSF dismantles the NSFNET this year; instrumentation for the accurate gathering of performance statistics, accounting, and quality of service in the Internet. In the coming year we hope to complement our studies of lower layer network issues with investigations into the critical architectural limits we are reaching at the higher layers of the national network infrastructure. We hope interested parties within the Internet research community will find this report helpful in understanding our research agenda. We also wish to use this report to stimulate further discussion and interaction among researchers pursuing similar projects and goals.