The motivation for the Phase I effort to use carbon nanotubes for application to magnets in space was based on published reports that their current carrying capacity was 10,000 times that of other superconductors and that their mechanical strength was 100 times that of steel on a mass basis. In phase I, we investigated the properties of this amazing new material and concluded the original premise was substantially correct, although some details remain to be investigated and a whole new suite of tools and machinery are required. In Phase II, we are proposing to advance this technology to the point of winding a nanotube magnet coil, testing it and delivering it to NASA/MSFC. The main thrusts of the program include some more definitive measurements of superconducting properties as a function of temperature, magnetic field and mechanical strain. In parallel efforts, tools will be developed to wind the carbon nanotube coils, attach electrical leads to them and test their performance. We will update the conceptual design for a NASA magnet for an MHD disk generator using carbon nanotube conductors and perform sufficient economic analyses to determine the economic feasibility of this application of carbon nanotubes. POTENTIAL COMMERCIAL APPLICATIONS The most immediate commercial applications of this technology are for magnets that are deployed on space vehicles and aircraft for power and propulsion. A dramatic reduction in weight is possible as a result of the high current density. This potential, factored into a power or propulsion system weight that is mostly from the magnet with existing technology, has the result of dramatic increases in performance per unit system weight. In addition there are potential fruitful applications to magnetic nozzles, both the generator and accelerator in the AJAX type propulsion system, flow modification systems for hypersonic aircraft and magnetic confinement of fusion reactions. These applications, particularly in space can justify a premium price because of the cost of launching mass into space. If the technology is developed at a price competitive with other superconductors, there is a huge market in earth based electrical equipment such as large electric motors and generators, transformers, power transmission lines, ground fault isolators, magnetic field gradient particle separators, magnets for MRI machines and all the other markets identified for high temperature superconductors identified in the U. S. DOE market penetration studies