We present the first results from our post-Newtonian (PN) smoothed particle
hydrodynamics (SPH) code, which has been used to study the coalescence of
binary neutron star (NS) systems. The Lagrangian particle-based code incorp
orates consistently all lowest-order (1PN) relativistic effects, as well as
gravitational radiation reaction; the lowest-order dissipative term in gen
eral relativity. We test our code on sequences of single NS models of varyi
ng compactness, and we discuss ways to make PN simulations more relevant to
realistic NS models. We also present a PN SPH relaxation procedure for con
structing equilibrium models of synchronized binaries, and we use these equ
ilibrium models as initial conditions for our dynamical calculations of bin
ary coalescence. Though unphysical, since tidal synchronization is not expe
cted in NS binaries, these initial conditions allow us to compare our PN wo
rk with previous Newtonian results. We compare calculations with and withou
t 1PN effects, for NS with stiff equations of state, modeled as polytropes
with Gamma = 3. We find that 1PN effects can play a major role in the coale
scence, accelerating the final inspiral and causing a significant misalignm
ent in the binary just prior to final merging. In addition, the character o
f the gravitational wave signal is altered dramatically, showing strong mod
ulation of the exponentially decaying wave form near the end of the merger.
We also discuss briefly the implications of our results for models of gamm
a-ray bursts at cosmological distances.