A finite-volume based, time-marching method for turbulent and laminar flows is described. Extensions to the computational procedure to allow the handling of shock induced separation and large regions of strong backflow are emphasized. Two test cases are considered, the United Technologies Research Center (UTRC) separated and reattached turbulent boundary layer and the strong shock case in the McDonnell Douglas Research Lab (MDRL) transonic diffuser G. The extended method worked well on the UTRC flow with a boundary layer blockage of 58% and a maximum backflow velocity of 37% of the local maximum free-stream velocity. It also worked well on the MDRL diffuser with a shock Mach number of 1.353 and a maximum backflow velocity of -71.7 m/s. A Mach number dependent interpolation formula for effective pressure was developed for use in density-update time-marching methods.