Not yet reviewed by Pith; the record is open.

We develop the variational/parquet diagram approach to the structure of nuclear systems with strongly state-dependent interactions. For that purpose, we combine ideas of the general Jastrow-Feenberg variational method and the local parquet-diagram theory for bosons with state-dependent interactions (R. A. Smith and A. D. Jackson, Nucl. Phys. {\bf 476}, 448 (1988)). The most tedious aspect of variational approaches, namely the symmetrization of an operator dependent variational wave function, is thereby avoided. We carry out calculations for neutron matter interacting via the Reid and Argonne $v_6$ models of the nucleon-nucleon interaction. While the equation of state is a rather robust quantity that comes out reasonably well even in very simplistic approaches, we show that effective interactions, which are the essential input for calculating dynamic properties, depend sensitively on the quality of the treatment of the many-body problem.