The Dual-Mode Vehicle (DMV) concept for an automated highway system is envisioned as providing for operation of vehicles under automatic control on specially constructed "guideways" and under manual control on the usual types of highways in order to facilitate the collection and distribution of passengers [1]. Although automated highways have long been popularly envisioned as forming part of a future inter-city transportation system, the real need for highway capacity is in and near urban areas. Traffic patterns in urban areas are diverse; this implies that, if automated highways are to be built in urban areas then automated highway networks will eventually evolve in those areas. Of course, justification of a DMV urban network will require that guideway lane capacity be much greater than the capacity of a freeway lane, that the operation of an automated network be superior to the operation of a freeway network, and that land requirements for the automated network be less than land requirements for the freeway network. Meeting these and other requirements for an urban automated highway network is not an easy task, since the diverse travel demands in urban regions cause severe problems in the design of the automated vehicle system. For example, a recent study [2] considered travel demands for typical automated highway networks in a large urban area. Trip volumes on one network from that study are shown in Figure 1 for a typical rush hour. A study of the characteristics of the trips on the network indicated that a typical vehicle passed through three interchanges while travelling through the network and that the number of vehicles desiring to enter the network through one entrance commonly ranged up to 1000 per hour and occasionally exceeded double that number.