We propose a new laser machining technique using nonlinear selffocusing media such as carbon disulfide and nitrobenzene. The technique uses the catastropic self-focusing solutions to the nonlinear wave equation to produce intense non-diffracting optical filaments ideally suitedfor producing small holes. The "liquid optics" offers several advantages over conventional optical focusing: 1) considerably smaller holes (10-50 microns in diameter), 2) elimination of conical holes, 3) a self-adjusting optical systems that effectively places a lense inside the evolving hole, 4) confinement of drilling fragments, and 4) low cost. We propose to demonstrate this method at nd:yag and ruby laser wavelengths with a variety of metals and ceramics including the newly discovered high t(c) superconductors. In addition, a complete numerical model including nonlinear beam propagation as well as heat and mass transfer from the hole area will be undertaken on a cyber supercomputer at the jvnc at princeton university.