The object of this research is to develop permanent magnet motors having significantly higher torque capability than the state- of-the-art through the use of air-gap winding armatures and advanced cooling techniques. According to preliminary studies, the air-gap winding motor has a performance factor more than twice as high as conventional permanent magnet motors, two to three times as much torque capacity as equivalently cooled conventional motors, and shorter mechanical and electrical time constants. These high torque and rapid response capabilities would enable such motors to compete with electrohydraulic actuators as lower cost, faster response, direct actuators for robotic and control applications. These characteristics, as well as high thermal capacity, suggest their application as machine-tool servo motors. The object of the Phase I research is to further develop the electromagnetic, thermal, and mechanical models of the air-gap winding motor, and to prepare a detail design for a prototype air-gap winding motor.