Space plasma simulation techniques are proposed to study magnetospheric dynamics. A major research effort will be in the study of shock waves and discontinuities. Kinetic theory approach will be used to investigate dissipative processes in the intermediate shocks. These newly discovered intermediate shocks and their time-dependent properties will be studies for application to reconnection processes in the dayside magnetopause boundary layer. A multigrid numerical scheme will be developed for the global study of the magnetopause boundary layer. This model will be determine the role of Kelvin Helmholtz instability. A unified model of the particle acceleration and wave emission in the auroral zone will be developed. The model will explain the processes by which the ion beam energy in the plasma sheet boundary layer couples to the nonlinear phenomena (double layers and electrostatic shocks) in the auroral zone.