The X-33 Guidance, Navigation, and Control (GN&C) Peer Review Team (PRT) was formed to assess the integrated X-33 vehicle GN&C system in order to identify any areas of disproportionate risk for initial flight. The eventual scope of the PRT assessment encompasses the GN&C algorithms, software, avionics, control effectors, applicable models, and testing. The initial (phase 1) focus of the PRT was on the GN&C algorithms and the Flight Control Actuation Subsystem (FCAS). The PRT held meetings during its phase 1 assessment at X-33 assembly facilities in Palmdale, California on May 17-18, 2000 and at Honeywell facilities in Tempe, Arizona on June 7, 2000. The purpose of these meetings was for the PRT members to get background briefings on the X-33 vehicle and for the PRT team to be briefed on the design basis and current status of the X-33 GN&C algorithms as well as the FCAS. The following material is covered in this PRT phase 1 final report. Some significant GN&C-related accomplishments by the X-33 development team are noted. Some topics are identified that were found during phase 1 to require fuller consideration when the PRT reconvenes in the future. Some new recommendations by the PRT to the X-33 program will likely result from a thorough assessment of these subjects. An initial list of recommendations from the PRT to the X-33 program is provided. These recommendations stem from topics that received adequate review by the PRT in phase 1. Significant technical observations by the PRT members as a result of the phase 1 meetings are detailed. (These are covered in an appendix.) There were many X-33 development team members who contributed to the technical information used by the PRT during the phase 1 assessment, who supported presentations to the PRT, and who helped to address the many questions posed by the PRT members at and after the phase 1 meetings. In all instances the interaction between the PRT and the X-33 development team members was cordial and very professional. The members of the PRT are grateful for the time and effort applied by all of these individuals and hope that the contents of this report will help to make the X-33 program a success.