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We review a recently developed method, based on a pseudoparticlerepresentation of correlated electrons, to describe both Fermi liquid andnon-Fermi liquid behavior in quantum impurity systems. The role of theprojection onto the physical Hilbert space and the impossibility of slave bosoncondensation are discussed. By summing the leading coherent spin and chargefluctuation processes in a fully self-consistent and gauge invariant way oneobtains the correct infrared behavior of the pseudoparticles. The temperaturedependence of the spin susceptibility for the single channel and two-channelAnderson models is calculated and found to agree well with exact results.

Diagrammatic Theory of Anderson Impurity Models: Fermi and Non-Fermi Liquid Behavior