New heretofore unstudied states of plasmas, embodying both high electron density and exceptionally high specific power densities, can be produced with modem femtosecond laser technology. Preliminary experiments have shown that such plasmas are unusually powerful sources of radiation in the X-ray range. This radiation can be used for both (1) basic studies of this new high-density plasma state of matter and (2) a range of important applications involving condensed matter. Among the most significant applications foreseen is the development of a high-resolution microholographic imaging technology applicable to structural assays of living material for biology and medicine and (b) an understanding of the detailed structure of advanced materials. The scientific expertise and technologies necessary to advance this new area of research are assembled in a complementary fashion by the joint participation of two internationally prominent groups, one at the Lebedev Physical Institute in Moscow, in cooperation with the Russian Federal Nuclear Center, and the other at the University of Illinois at Chicago. The former represents extensive experience in X-ray spectroscopic instrumentation and relevant theoretical aspects of plasma dynamics while the latter provides advanced high-power laser technology and broad experience in applying it to the study of physical interactions. This effort unites these two groups in a collaborative program which mobilizes the research toward important peaceful endeavors. We foresee the development of attractive career opportunities in the civilian sector for all participants with the proposed program.