This review focuses on the biochemical, biophysical, and catalytic properti
es of terminase, an enzyme involved in bacteriophage lambda genome packagin
g. The holoenzyme possesses ATPase, DNA strand-separation, and site-specifi
c nuclease activities that work in concert to insert a viral genome into th
e confines of a preformed capsid. Moreover, the terminase subunits are part
of a series of nucleoprotein complexes involved in genome packaging, inclu
ding remarkably stable intermediates that transition to a highly mobile UNA
packaging 'machine.' Models for the assembly and interconversion of these
complexes are presented. Interactions between the catalytic sites in the en
zyme complex, and modulation of these catalytic activities as it relates to
the assembly and relative stability of the packaging intermediates are dis
cussed. This ordered progression of nucleoprotein intermediates is a common
theme in biology as demonstrated by mechanistic similarities between viral
DNA packaging, the initiation of chromosomal replication, and the initiati
on of transcription. Terminase is thus part of a growing number of examples
of biological 'machines' or molecular 'motors.'