The objective of the current project is to provide a theoretical basis for better understanding of numerous radar and rocket observations of density irregularities and related effects in the lower equatorial and high-latitude ionospheres. The research focused on: (1) continuing efforts to develop a theory of nonlinear saturation of the Farley-Buneman instability; (2) revision of the kinetic theory of electron-thermal instability at low altitudes; (3) studying the effects of strong anomalous electron heating in the high-latitude electrojet; (4) analytical and numerical studies of the combined Farley-Bunemadion-thermal instabilities in the E-region ionosphere; (5) studying the effect of dust charging in Polar Mesospheric Clouds. Revision of the kinetic theory of electron thermal instability at low altitudes.