A research effort was initiated at Georgia Tech in February 1991 on the development of efficient techniques for the computation of 2-D and 3-D unsteady compressible flow problems. It was found that in 2-D unsteady viscous flow applications, the generalized minimal residual (GMRES) scheme was able to significantly improve the accuracy and stability characteristics of an existing 2-D ADI (Alternating Direction Implicit) time marching scheme. That is, the GMRES/ADI combination allowed 10 to 20 times larger time steps compared to an ADI scheme. Because the GMRES algorithm requires 5 to 10 times the CPU work compared to the ADI scheme, the combined GMRES/ADI scheme yields a net factor of 2 savings in CPU cost. During the past year, we also experimented with GMRES/multigrid/ADI combination. The purpose of this combination was to compute the low frequency components of the change in the flow properties from one time step to the next on a coarse grid. This strategy reduces the memory requirements of the GMRES method roughly by a factor of 4-8 for steady flow problems.