Title: Cohomology with Grosshans graded coefficients, version II Author: Wilberd van der Kallen Institution: Universiteit Utrecht Home Page: http://www.math.uu.nl/people/vdkallen/kallen.html Status: Preprint Abstract: Let the reductive group $G$ act on the finitely generated commutative $k$-algebra $A$. We ask if the finite generation property of the ring of invariants extends to the full cohomology ring. In the previous version we confirmed this when the action on $A$ is replaced by the `contracted' action on the Grosshans graded ring $\gr A$, provided the characteristic of $k$ is large. In the present version we settle the case $G=SL_2$. We pose several questions, whose solution would have significance for the main problem.