We discuss (3+1) dimensional general relativistic hydrodynamic simulations of close neutron star binary systems. The relativistic field equations are solved at each time slice with a spatial 3-metric chosen to be conformally flat. against this solution the hydrodynamic variables and gravitational radiation are allowed to respond. We have studied four physical processes which occur as the stars approach merger. These include: 1) the relaxation to a hydrodynamic state of almost no spin; 2) relativistically driven compression, heating, and neutrino emission; 3) collapse to two black holes; and 4) orbit inspiral occurring at a lower frequency than previously expected. We give a brief account of the physical origin of these effects and an explanation of why they do not appear in models based upon, 1PN hydrodynamics, a weak field multipole expansion, a tidal analysis, or a rigidly corotating velocity field. The implication of these results for gravity wave detectors is also discussed.
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