A field test using Paecilomyces lilacinus to control reniform nematodes in cotton was conducted for the second year in 2007. The specific fungal isolate, P. lilacinus strain 251, has been named NemOut for use in cotton. The Nemout product tested in 2007 is a new formulation and 10X the 2006 Nemout. A test replicated six times were carried out at the Delta Research and Extension Center at Stonville, MS. Plots were four rows wide and 150 feet long in a field with sandy loam soil heavily infested with reniform nematodes. The cotton variety used was D&PL 555 double treated. Treatments were Nemout as a spray in-furrow at planting. The conventional treatments were TemikŪ at 5 lbs per acre and AVICTA and AERIS treated seed applied as per label. Plots were sampled for nematodes prior to planting and at monthly intervals after planting. Root samples were taken four weeks after planting and reniform egg masses were counted. Standard plant indices were obtained bi-weekly in all plots. Plots were sprayed as needed to eliminate insect effects. Yields were obtained with a two row research picker equipped with a yield monitor.