9401515 Pasnicu The proposed research has two major objectives: 1.To classify all the real rank zero (stable rank one) AH algebras by their graded ordered scaled group. 2. To obtain nonstable K-theory results for AH algebras. The completion of the first project would be a major step in the classification problem of separable nuclear C*-algebras by invariants. The completion of the second project will give a positive answer to an important conjecture of Blackadar and will provide important information in itself and also concerning the classification of nuclear C*-algebras. Operators are infinite dimensional generalizations of matrices that possess a natural addition and multiplication. There is a natural involution called the adjoint operation on operators that behaves much like the transpose operation (reflection in the diagonal) on square matrices. A collection of operators that is closed under addition, multiplication, the adjoint operation and has a certain topological property is called a C*-algebra. These algebras are important in several branches of mathematics as well as in mathematical physics and dynamical systems theory. The C*-algebras investigated here are ones that are built out of matrix algebras in a limiting manner. The basic goal is to classify these important algebras using simple invariants. ***