This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A066683. The abstract provided by the Pentagon follows: Testing and analysis of a shrouded turbojet engine with possible application for high speed propulsion on low cost Unmanned Combat Aerial Vehicles (UCAV), Unmanned Aerial Vehicles (UAV) and missiles. The possibility of a turbojet providing thrust at subsonic conditions and the ramjet section providing the thrust in the supersonic regime exists. The combined cycle engine (CCE) could be incorporated into a variety of applications. The building of a new freejet facility and engine test rig at the Naval Postgraduate School enabled dynamic testing of the ongoing development of a turboramjet. The freejet facility and new engine stand performed without exception. The shrouded engine was dynamically tested in a freejet up to Mach 0.4. The engine performance measurements closely matched those predicted by a cycle analysis program, GASTURB. Computational fluid dynamics (CFD) was used to analyze the supersonic inlet at a design point of Mach 2. The results provided by the CFD code, OVERFLOW, matched theoretical flow parameters. The intake design was slightly modified to enhance performance of shock waves in the supersonic flight regime.