Several recent laboratory observations that bear on the origin of the Bilat
eria are reviewed and interpreted in light of our set-aside cell theory for
bilaterian origins. We first discuss new data concerning the phylogeny of
bilaterian phyla. Next, we use systematic, molecular, and paleontological l
ines of evidence to argue that the latest common ancestor of echinoderms pl
us hemichordates used a maximal indirect mode of development, furthermore,
the latest common ancestor of molluscs and annelids was also indirectly dev
eloping. finally, we discuss new data on Hox gene expression patterns which
suggest that both sea urchins and polychaete annelids use Hox genes in a v
ery similar fashion. Neither utilizes the complete Hox complex in the devel
opment of the larva per se, while the Hox complex is expressed in the set-a
side cells from which the adult body plan is formed. Our current views on t
he ancestry of the bilaterians are summarized in phylogenetic terms, incorp
orating the characters discussed in this paper. (C) 2000 Academic Press.