This paper describes the second government-conducted, piloted flight simulation of the Grumman Design 698 V/STOL (vertical and short takeoff and landing) aircraft. Emphasis is on the aircraft's handling qualities as rated by various NASA, Navy, and GAC pilots with flight experience ranging from CTOL (conventional takeoff and landing) to V/STOL aircraft. The Design 698 had been modified to resolve the flight problems that were of most concern to the pilots in the first investigation (Phase I). Those problems included an adverse nonminimum phase (NMP) acceleration response in both the longitudinal and lateral axes, a large thrust-response lag, and adverse ground effects. The adverse NMP acceleration is an attribute of the vertical vanes (a Grumman patent) positioned in the fan exhaust flow. The primary modifications included using the vertical-vane deflection as a thrust spoiling method, the addition of the cross-shafted propulsion system, and the implementation of two velocity and attitude control modes (standard and precision) for speeds below 50 knots.