An appropriate generalization of the Jacobi equation of motion for the pola
r moment of inertia I is considered in order to study the N-body problem wi
th variable masses. Two coupled ordinary differential equations governing t
he evolution of I and the total energy E are obtained. A regularization sch
eme for this system of differential equations is provided. We compute some
illustrative numerical examples, and discuss an average method for obtainin
g approximate analytical solutions to this pair of equations. For a particu
lar law of mass loss we also obtain exact analytical solutions. The applica
tion of these ideas to other kind of perturbed gravitational N-body systems
involving drag forces or a different type of mass variation is also consid
ered.