A molecular dynamic model of the properties of a strongly interacting particulate dispersion is described. The model is applied to the study of the properties of a dispersion of advanced metal particles from the intrinsic magnetic behavior through the effects of shear and orientation during the coating process to a final description of the microstructure of the coated medium. The predicted magnetic properties of the dispersion, calculated from the physical properties of the particles and medium, give excellent agreement with experiment. Initial predictions of the effects of shear show the model to be a useful basis for the interpretation of shear magnetometry. Following the ''model'' coating process the model gives realistic predictions of the microstructure of coated media. (C) 1997 American Institute of Physics.