[en] Considerable progress has been made in extending neoclassical MHD theory and in exploring the linear instabilities, nonlinear behavior and turbulence models it implies for tokamak plasmas. The areas highlighted in this paper include: extension of the neoclassical MHD equations to include temperature-gradient and heat flow effects; the free energy and entropy evolution implied by this more complete description; a proper ballooning mode formalism analysis of the linear instabilities; a new rippling mode type instability; numerical simulation of the linear instabilities which exhibit a smooth transition from resistive ballooning modes at high collisionality to neoclassical MHD modes at low collisionality; numerical simulation of the nonlinear growth of a single helicity tearing mode; and a Direct-Interaction-Approximation model of neoclassical MHD turbulence and the anomalous transport it induces which substantially improves upon previous mixing length model estimates. 34 refs., 2 figs