CS educators face many challenges in teaching basic computer programming to first-year students. As a result, faculty must find new and interesting ways to engage students and to provide opportunities for student success. This paper reports on a two-year study involving the Problem-Oriented Animated Learning Modules for Introductory Computer Science (PALMS for CS1) project. PALMS for CS1 is a set of animated learning modules designed to enhance student engagement, success, and retention through the use of computer animation, video, audio, and storytelling. The results of this study indicate that PALMS for CS1 has been successful in engaging introductory students but more work remains to improve student success and retention. Marked improvement in student success and retention was seen during the second year of the study, though success and retention are still a challenge for traditionally underrepresented groups.