The purpose of the SBIR Phase I research was to demonstrate and validate time-domain numerical solutions of Maxwell's equations for problems involving optical (laser) scattering and diffraction from submicron objects and features on silicon substrates. The intended applications of this computational optics capability is to contaminant monitoring, process monitoring, microlithography, and imaging problems, as encountered in the integrated circuit (ILC) manufacturing process. These results indicate that there is no inherent limitation to simulating rigorously, many, of the optical problems associated with IC fabrication, inspection, and design. This is particularly true with the availability of supercomputers and modern numerical algorithms applied to Maxwell's equations. Certain limitations do exist, however, associated with size of the computational grid, very short or long wavelengths, and fully three-dimensional problems. These limitations will be addressed in Phase II in the context of enhanced radiation conditions and semi-analytic algorithms. The PI has achieved a high level of success in the Phase I effort, and there is every expection for further success in Phase II. The Phase III letters of commitment are impressive.