The lamellar grating problem is reformulated through the concept of adaptiv
e spatial resolution. We introduce a new coordinate system such that spatia
l resolution is increased around the discontinuities of the permittivity fu
nction. We derive a new eigenproblem that we solve by using Fourier expansi
ons for both the field and the coefficients of Maxwell's equations. We prov
ide numerical evidence that highly improved convergence rates can be obtain
ed. (C) 1999 Optical Society of America [S0740-3232(99)00910-2].