The simulation of nuclear reactor fuel performance involves complex thermomechanical processes between fuel pellets, made of fissile material, and the protective cladding that surrounds the pellets. An important design goal for a fuel is to maximize the life of the cladding thereby allowing the fuel to remain in the reactor for a longer period of time to achieve higher degrees of burnup. This presentation presents an initial approach for modeling the thermomechanical response of reactor fuel, and details of the solution method employed within INL's fuel performance code, BISON. The code employs advanced methods for solving coupled partial differential equation systems that describe multidimensional fuel thermomechanics, heat generation, and oxygen transport within the fuel. This discussion explores the effectiveness of a JFNK-based solution of a problem involving three dimensional fully coupled, nonlinear transient heat conduction and that includes pellet displacement and oxygen diffusion effects. These equations are closed using empirical data that is a function of temperature, density, and oxygen hyperstoichiometry. The method appears quite effective for the fuel pellet / cladding configurations examined, with excellent nonlinear convergence properties exhibited on the combined system. In closing, fully coupled solutions of three dimensional thermomechanics coupled with oxygen diffusion appear quite attractive using the JFNK approach described here, at least for configurations similar to those examined in this report