ABSTRACT EEC-9816302 KAPOOR Machining is one of the prime components of manufacturing technology. Maintaining leadership in this area is vital to U.S. productivity and economics. The University of Illinois Industry/University Cooperative Research Center (I/UCRC) for Machine Tool Systems Research plays an important role in maintaining the U.S. position in this industry. The I/UCRC for Machine Tool Systems Research continues to meet the I/UCRC Program requirements for the second five year continuing grant. The Center's research addresses projects in 1.) Agile/Flexible Machine Tool Structures, 2.) Machining Process Modeling and Simulation, 3.) Machine Tool System-Planning and Control, and 4.) Machining Process Development and Innovation.