This paper describes the linear kinetic theory of electrostatic drift instabilities driven by Pedersen and density drift velocities. The model uses a uniform magnetic field B=zˆB; a weak, uniform density gradient in the x direction; and a weak, uniform electric field in the y direction. Weak charged-neutral collisoins are represented by the addition of BGK model terms to the Vlasov equaiton. The resulting local dispersion equation is used to study the properties of the associated instabilities at kai>1 (where k is the wave number and ai is the ion gyroradius). Results show that the E¿B gradient drift instability at kaia≂1 may grow in the auroral ionosphere primarily in the vicinity of 200 km and only if the electron density is sufficiently small.