Exploratory field-reversed-configuration (FRC) experiments, initiated at Los Alamos in the midseventies, demonstrated FRC lifetimes substantially longer than predicted from MHD stability theory. Subsequent experimental and theoretical advances have provided considerable understanding of FRC stability physics, the characteristics of the configuration loss processes, and the particle confinement scaling with size. The critical FRC physics issues, which directly relate to the development of an FRC fusion reactor and need to be addressed in a new generation of experiments, have been clearly identified.