  We use a high-resolution grid-based hydrodynamics method to simulate the
multi-phase interstellar medium in a Milky Way-size quiescent disk galaxy. The
models are global and three-dimensional, and include a treatment of star
formation and feedback. We examine the formation of gravitational instabilities
and show that a form of the Toomre instability criterion can successfully
predict where star formation will occur. Two common prescriptions for star
formation are investigated. The first is based on cosmological simulations and
has a relatively low threshold for star formation, but also enforces a
comparatively low efficiency. The second only permits star formation above a
number density of 1000 cm^-3 but adopts a high efficiency. We show that both
methods can reproduce the observed slope of the relationship between star
formation and gas surface density (although at too high a rate for our adopted
parameters). A run which includes feedback from type II supernovae is
successful at driving gas out of the plane, most of which falls back onto the
disk. This feedback also substantially reduces the star formation rate.
Finally, we examine the density and pressure distribution of the ISM, and show
that there is a rough pressure equilibrium in the disk, but with a wide range
of pressures at a given location (and even wider for the case including
feedback
