This annual report presents the progress of Applied Network Research Group at the San Diego Supercomputer Center (SDSC) and the University of California, San Diego (UCSD) during the past year. Research topics include: analysis of the existing data and instrumentation of the NSFNET; sampling network traffic data in wide area environments; end-to-end delay and jitter across wide-area networks; routing stability and characteristics; reliability and quality of service metrics; performance evaluation of a multimedia application; and individual statistics of interest for performance evaluation and modeling in a wide area environment. We also include research efforts outside the scope of this proposal but within the scope of the larger ANR research agenda, such as our involvement with the CASA gigabit network infrastructure and our participation in NSF's NREN Engineering Group.