The second task in Thrust 1 is Task 1.2: Intraoperative Sensing and Visualization. Here, we are developing techniques for high-performance tracking of instruments in video images and surgical devices that integrate force-sensing and manipulation capabilities. Initial work on the video aspect has resulted in tracking technology undergoing commercial licensing, software for real-time video mosaicing under non-rigid deformation, and a demonstration of real-time tracking of deforming surfaces in stereo endoscope or microscope image sequences. Partial funding to support this work has been secured through Intuitive Surgical, and proposals for additional funding have been submitted to DoD and NSF. We have also initiated work on very compact, high-resolution ultrasound systems, and have a STTR grant with Intuitive Surgical for laparoscopic ultrasound. Force sensor development for microsurgery has also continued, following the original prototypes developed by Berkelman and Whitcomb. This work has now moved to CMU under the direction of Riviere. Thakor at JHU has developed a new method, based on laser speckle, for imaging blood flow in small vessels. For minimally invasive surgery, Okamuras group at JHU has developed force-sensing surgical instruments that can be integrated with the Telemanipulation testbed.