We have used DNA templates containing a vaccinia early promoter fused to G-less cassettes of varying length to study the formation of ternary transcription complexes by vaccinia virus RNA polymerase. Elongating polymerases were induced to pause at discrete sites on the DNA template by omission of GTP from transcription reactions. For most of the templates examined, the predominant sites of pausing were at or near the downstream border of the G-less transcription unit, as revealed by the size distribution of labeled RNAs synthesized in pulse-labeling reactions. Stability of ternary complexes containing nascent RNAs of any given length was assessed by the ability of these RNAs to be elongated upon provision of GTP. This criterion of stability could be met by complexes containing nascent RNAs as short as seven, eight, or nine nucleotides. In the presence of 3'-OMeGTP, nearly homogeneous populations of 3'-coterminal elongation complexes were positioned at the first G residue of the template. 3'-OMeG-arrested polymerases resumed elongation upon addition of GTP, apparently via sequential pyrophosphorolysis and nucleotide exchange at the site of elongation block. The ability to fix the 3' end facilitated analysis of initiation site choice based on the sizes of short nascent transcripts. Site choice was flexible and depended on the concentration of both the potential initiating NTP and the donor NTP participating in first phosphodiester bond formation. RNA polymerase could initiate at multiple positions within a nine-nucleotide region of the template. The rate of chain elongation by vaccinia polymerase during a single synchronous round of RNA synthesis was found to be 20-50 nucleotides per second.