Research has been underway at the Lawrence Livermore National Laboratory to build a theoretical and experimental base for the design of ambient-temperature passive magnetic bearings for a variety of possible applications. in the approach taken the limitations imposed by Earnshaw`s theorem with respect to the stability of passive magnetic bearing systems employing axially symmetric permanent-magnet elements are overcome by employing special combinations of elements, as follows: Levitating and restoring forces are provided by combinations of permanent-magnet-excited elements chosen to provide positive stiffnesses (negative force derivatives) for selected displacements (i.e., those involving translations or angular displacement of the axis of rotation). As dictated by Eamshaw`s theorem, any bearing system thus constructed will be statically unstable for at least one of the remaining possible displacements. Stabilization against this displacement is accomplished by using periodic arrays (`Halbach arrays`) of permanent magnets to induce currents in close-packed inductively loaded circuits, thereby producing negative force derivatives stabilizing the system while in rotation. Disengaging mechanical elements stabilize the system when at rest and when below a low critical speed. The paper discusses theory and equations needed for the design of such systems.