The work reported here is on the extension of the earlier proposal of the same title, August 1994-June 1996. The report for that work is also being submitted. The work reported there forms the foundation for this work from January 1997 to September 1997. After the earlier work was completed there were a few items that needed to be completed prior to submission of a new and more comprehensive proposal for further research. Those tasks have been completed and two new proposals have been submitted, one to NASA, and one to Health & Human Services WS). The main purpose of this extension was to refine some of the techniques that lead to automatic large scale evaluation of full mammograms. Progress on each of the proposed tasks follows. Task 1: A multiresolution segmentation of background from breast has been developed and tested. The method is based on the different noise characteristics of the two different fields. The breast field has more power in the lower octaves and the off-breast field behaves similar to a wideband process, where more power is in the high frequency octaves. After the two fields are separated by lowpass filtering, a region labeling routine is used to find the largest contiguous region, the breast. Task 2: A wavelet expansion that can decompose the image without zero padding has been developed. The method preserves all properties of the power-of-two wavelet transform and does not add appreciably to computation time or storage. This work is essential for analysis of the full mammogram, as opposed to selecting sections from the full mammogram. Task 3: A clustering method has been developed based on a simple counting mechanism. No ROC analysis has been performed (and was not proposed), so we cannot finally evaluate this work without further support. Task 4: Further testing of the filter reveals that different wavelet bases do yield slightly different qualitative results. We cannot provide quantitative conclusions about this for all possible bases without further support. Task 5: Better modeling does indeed make an improvement in the detection output. After the proposal ended, we came up with some new theoretical explanations that helps in understanding when the D4 filter should be better. This work is currently in the review process. Task 6: N/A. This no longer applies in view of Tasks 4-5. Task 7: Comprehensive plans for further work have been completed. These plans are the subject of two proposals, one to NASA and one to HHS. These proposals represent plans for a complete evaluation of the methods for identifying normal mammograms, augmented with significant further theoretical work.