This project addresses the problem of dynamic service adaptation in the Grid. The need for adaptation arises due to both resource and service demand uncertainty. With NGS support, we are tackling several key issues in this problem space: (1) a dynamic OGSA-based Grid service architecture to support dynamic service hosting - where to host and re-host a service within the Grid in response to service demand and resource fluctuation, (2) resource management middleware that dynamically decides how many resources to allocate to a request and where a request should run, (3) a dynamic leasing framework that decides how many resources to lease to a service to handle future requests, (4) and a new model of service robustness that can describe the sensitivity of a service to Grid fluctuations. In this short report, we present material on (1) and (3) in the interest of brevity. Papers describing all aspects of the project are contained in the bibliography.