  X-ray spectra of AGN are complex. X-ray absorption and emission features
trace gas covering a wide range of column densities and ionization states. High
resolution spectra show the absorbing gas to be outflowing, perhaps in the form
of an accretion disk wind. The absorbing complex shapes the form of the X-ray
spectrum while X-ray reverberation and absorption changes explain the spectral
and timing behaviour of AGN. We discuss recent progress, highlighting some new
results and reviewing the implications that can be drawn from the data.
