The problem can be simplified. Basically, Black is confined to the corner. The problem is not 'Black to live or escape', but simply 'Black to live'.
So the aim is to make two eyes. Assuming you know what this entails and can differentiate a real eye from a false one, the problem becomes simpler. Since Black's group of stones is on the second line and cannot go higher, there are only two moves to consider in order to maximize eye space:
$$B
$$ -------------------------------
$$ - . . . . . . . . . . . . . . .
$$ - a X X X X b . . . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .
- Click Here To Show Diagram Code
[go]$$B
$$ -------------------------------
$$ - . . . . . . . . . . . . . . .
$$ - a X X X X b . . . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .[/go]
In order to live, growing your eye space should be your first thought. Then you read out the natural answers to either move. Let's start with
'b'. White Blocks outside. Black expands his eye space and White tries to take it away. These problems train you to think about both living and killing. The hane is a natural killing tool, so...
$$B
$$ -------------------------------
$$ - . a b . 5 4 . . . . . . . . .
$$ - 3 X X X X 1 2 c . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .
- Click Here To Show Diagram Code
[go]$$B
$$ -------------------------------
$$ - . a b . 5 4 . . . . . . . . .
$$ - 3 X X X X 1 2 c . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .[/go]
Now
a and
b are miai to live, so Black succeeds. The next logical step is for White to take the eye away from the inside at
a instead of

, but after Black descends at
b, the hane of White

and the block of Black

leaves Black alive again.
The next step is for White to take the point

as his first move. To expand eye space, Black will crawl at

and White can next block at
c. This is what happens:
$$B
$$ -------------------------------
$$ - . 6 7 . 8 . 5 . . . . . . . .
$$ - 2 X X X X 1 3 4 . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .
- Click Here To Show Diagram Code
[go]$$B
$$ -------------------------------
$$ - . 6 7 . 8 . 5 . . . . . . . .
$$ - 2 X X X X 1 3 4 . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .[/go]
Black dies. Reversing which side Black descends on will only change the side at which White hanes. Nevertheless, it's an important difference and should be read out. Then you can decide what happens when Black descends directly at

after White's

.
After reading a few more variations you will rule out Black's first move as a viable way to make life and instead try our other original choice:
$$B
$$ -------------------------------
$$ - . . . . . . . . . . . . . . .
$$ - 1 X X X X . . . . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .
- Click Here To Show Diagram Code
[go]$$B
$$ -------------------------------
$$ - . . . . . . . . . . . . . . .
$$ - 1 X X X X . . . . . . . . . .
$$ - . O O O O O O O . . . . . . .
$$ - . . . . . . . . . . . . . . .
$$ - . O . . . . . . . . . . . . .
$$ - . . . . . . . . . . . . . .[/go]
The idea here is to get to know the basic moves that are played to expand and split eye space, and the basic moves that are used to reduce eye space and remove possibilities for splitting and to force false eyes. Then you try them in sequence. You try every sequence until you find a first move that unconditionally lets achieve your objective. Once all your opponent's possible responses result in your goals being achieved, you've solved the problem.
This is the foolproof way to read. Of course with experience you will simply 'know' that some moves will not work, and it will save you the effort of reading through a few of the sequences. Knowing shapes and techniques will help greatly as well.
In Cho Chikun's books, the arrangement of stones on the outside is largely irrelevant (though make sure to count the liberties!), and the group nearest the edge is simply closed in and forced to find a way to live. The goal of the group on the outside is to kill the enclosed group. In that respect, don't worry about escaping, and focus solely on making/destroying eyes.
I hope this helps.
