We study a means of creating multiparticle entanglement of neutral atoms us
ing pairwise controlled dipole-dipole interactions. For tightly trapped ato
ms the dipolar interaction energy can be much larger than the photon scatte
ring rate and substantial coherent evolution of the two-atom state can be a
chieved before decoherence occurs. Excitation of the dipoles can be made co
nditional on the atomic states, allowing for deterministic generation of en
tanglement. We derive selection rules and a figure of merit for the dipole-
dipole interaction matrix elements, for alkali atoms with hyperfine structu
re and trapped in localized center of mass states. Different protocols an p
resented for implementing two-qubit quantum logic gales such as the control
led-phase and swap gates. We analyze the error probability of our gate desi
gns, finite due to decoherence from cooperative spontaneous emission and co
herent couplings outside the logical basis. Outlines for extending our mode
l to include the full molecular interactions potentials are discussed.