The paper first shows results obtained with a simple two-layer model using liquid water potential temperature and total water mixing ratio as conservative variables. An additional equation for the evolution of the TKE responsible for the mixing across the two layers is added. Four different basic ways of destabilizing this model are studied: a) heating the lower layer, b) moistening the lower layer, c) cooling the upper layer, and d) drying the upper layer. Options b) and c) allow for saturation to occur, and results with this simple model illustrate the different effects that the onset of saturation produces in the turbulence level of the model. Next, different ways of treating buoyancy production of TKE in the cloudy-clear interface are assessed: 1) ignoring any saturation effect, 2) ignoring saturation effects until both layers become saturated, 3) considering both layers to be saturated as soon as one becomes saturated, 4) performing a weighted average of the saturated and non-saturated buoyancy production rates. The last approach seems most reasonable but it still requires a method to define the weighted average. Several options are investigated. We also show multi-layer results obtained with the PSU-TKE model in a 1-D version of the MM5 modeling system. Results for idealized cases are shown and the effects of different treatments of the cloudy-clear interface layer are discussed.