We investigate the shear response of nondilute solutions of a hairy-rod pol
yester using insitu optical rheometry. The transition to the concentrated r
egime, c**, is characterized by a strong concentration dependence of the ze
ro shear viscosity, a change in the sign of birefringence, and the emergenc
e of linear conservative dichroism. These features indicate the presence of
clusters which dominate the dynamics in this concentration regime, and as
such they represent their identifying signature. The stress-optical rule is
found to hold only in the concentration regime below c**, yielding stress-
optical coefficients closer to those of flexible chains rather than rods, c
onsistent with the wormlike character of the polyesters. At the highest con
centrations these solutions can be viewed as nondilute solutions of flexibl
e ellipsoidal clusters. The dynamics as well as the anomalous birefringence
(change of sign) can be rationalized using the theoretical analysis of Cat
es, who considered a presmectic local ordering resulting from the interplay
of sterically interacting particles and the external field.