RC4 is one of the most widely used ciphers in practical software applications. In this thesis we examine security and design aspects of RC4. First we describe the functioning of RC4 and present previously published analyses. We then present a new cipher, Chameleon which uses a similar internal organization to RC4 but uses different methods. The remainder of the thesis uses ideas from both Chameleon and RC4 to develop design strategies for new ciphers. In particular, we develop a new cipher, RC4B, with the goal of greater security with an algorithm comparable in simplicity to RC4. We also present design strategies for ciphers and two new ciphers for 32-bit processors. Finally we present versions of Chameleon and RC4B that are implemented using playing-cards
