  I survey recent successes in the application of relativistic MHD and
force-free electrodynamics to the modeling of the pulsars' rotational energy
loss mechanism as well as to the structure and emission characteristics of
Pulsar Wind Nebulae. I suggest that unsteady reconnection in the current sheet
separating the closed from the open zones of the magnetosphere is responsible
for the torque fluctuations observed in some pulsars, as well as for departures
of the braking index from the canonical value of 3. I emphasize the
significance of the boundary layer between the closed and open zones as the
active site in the outer magnetopshere. I elaborate on the conflict between the
models currently in use to interpret the gamma ray and X-ray pulses from these
systems with the electric current flows found in the spin down models. Because
the polar cap ``gap'' is the essential component in the supply of plasma to
pulsar magnetospheres and to pulsar wind nebulae, I emphasize the importance of
high sensitivity gamma ray observations of pulsars with core components of
radio emission and high magnetospheric voltage, since these observations will
look directly into the polar plasma production region. I also discuss the shock
conversion of flow energy into the spectra of the synchrotron emitting
particles in the Nebulae. I comment on the prospects for future developments
and improvements in all these areas.
