We show that every R-diagonal operator x has a continuous family of invaria
nt subspaces relative to the von Neumann algebra generated by x. This allow
s us to find the Brown measure of x and to find a new conceptual proof that
Voiculescu's S-transform is multiplicative. Our considerations base on a n
ew concept of R-diagonality with amalgamation, for which we give several eq
uivalent characterizations.