9403201 This new proposal is to study strongly correlated systems using newly developed renormalization group techniques. The proposed work is expected to provide some understanding of the validity of Fermi liquid theory in two dimensions. The techniques will also be used to study effects of electron-electron repulsion on the persistent current in mesoscopic rings. %%% One of the open questions in the study of strongly correlated systems is whether the conventional Fermi liquid theory is is valid in two-dimension. The proposed research will use very efficient numerical methods to resolve this question. The work will focus on high temperature superconductors and mesoscopic rings.