A systematic theory for the dynamics of hard-sphere suspensions of int
eracting Brownian particles with both hydrodynamic and direct interact
ions is presented. A generalized diffusion equation is derived for con
centrated suspensions. The volume fraction (phi) dependence of the sho
rt- and long-time self-diffusion coefficients are thus explored from a
unifying point of view. The long-range hydrodynamic interactions due
to the Oseen tenser are shown to play a crucial role in both coefficie
nts, while the short-range hydrodynamic interactions just lead to corr
ections. The importance of the correlation effects between particles d
ue to the long-range hydrodynamic interactions is also stressed. The n
onlocal correlation effect is an important factor, leading to the beha
vior of the long-time self-diffusion coefficient (D-S(L)) as D-S(L) si
milar to (l - phi/phi(0))(2) near the volume fraction of phi(0) = 0.57
18. The direct interactions are also found to be drastically reduced b
y the short-range hydrodynamic interactions.