This paper describes a novel theoretical framework of how the position of a letter within a string is encoded, the SERIOL model (sequential encoding regulated by inputs to oscillations within letter units). Letter order is represented by a temporal activation pattern across letter units, as is consistent with current theories of information coding based on the precise timing of neural spikes. The framework specifies how this pattern is invoked via an activation gradient that interacts with subthreshold oscillations and how it is decoded via contextual units that activate word units. Using mathematical modeling, this theoretical framework is shown to account for the experimental data from a wide variety of string-processing studies, including hemispheric asymmetries, the optimal viewing position, and positional priming effects.