This report documents the progress of the student Vijay S. Mahadevan from the Nuclear Engineering Department of Texas A&M University over the summer of 2007 during his visit to the INL. The purpose of his visit was to investigate the physics-based preconditioned Jacobian-free Newton-Krylov method applied to physics relevant to nuclear reactor simulation. To this end he studied two test problems that represented reaction-diffusion and advection-reaction. These two test problems will provide the basis for future work in which neutron diffusion, nonlinear heat conduction, and a twophase flow model will be tightly coupled to provide an accurate model of a BWR core.