A Division 1 Working Group on "Nomenclature for Fundamental Astronomy" (NFA) was formed at the 25th IAU GA in 2003 in order to provide proposals for new nomenclature associated with the implementation of the IAU 2000 Resolutions. This WG is also intended to make related educational efforts for addressing the issue to the large community of scientists. Five Newsletters were issued from October 2003 to July 2004 and posted on the NFA webpage (http://syrte.obspm.fr/iauWGnfa/). One important step has been the preparation of a questionnaire including a part on 'terminology choices' and a part for the Almanac Offices and related organizations. The summary of the responses and comments to this questionnaire and further questions have led to draft WG recommendations and guidelines on terminology together with a Resolution proposal to the IAU 2006 GA which are supported by explanatory documents. This paper reports on the WG activities, draft recommendations and future actions.