The present volume is a natural follow-up to Neural Networks: Advances and Applications which appeared one year previously. As the title indicates, it combines the presentation of recent methodological results concerning computational models and results inspired by neural networks, and of well-documented applications which illustrate the use of such models in the solution of difficult problems. The volume is balanced with respect to these two orientations: it contains six papers concerning methodological developments and five papers concerning applications and examples illustrating the theoretical developments. Each paper is largely self-contained and includes a complete bibliography. The methodological part of the book contains two papers on learning, one paper which presents a computational model of intracortical inhibitory effects, a paper presenting a new development of the random neural network, and two papers on associative memory models. The applications and examples portion contains papers on image compression, associative recall of simple typed images, learning applied to typed images, stereo disparity detection, and combinatorial optimisation.