The purpose of this paper (some of whose conclusions were announced in [NRSW]) is to study the Bergman and Szegd projection operators on pseudoconvex domains Q of finite type in C2. The results we obtain are of three kinds: (i) The size estimates of the Bergman and Szeg6 kernels, and their derivatives. (ii) The cancellation properties of those kernels, expressed in terms of the actions of these operators on suitable bump functions; these properties have an interest in their own right but are also crucial in (iii) below. (iii) The sharp mapping properties of these operators on functions spaces, such as LP, the nonisotropic Sobolev spaces, and the nonisotropic Lipschitz spaces, which are naturally attached to the geometry of the boundary. This also leads ultimately to sharp results in the regularity properties of solutions of the equation du = f in Q, and 9bU = f on the boundary. Let us describe these matters in more detail. Our starting points are certain basic geometric constructs associated to Q: a metric p defined in terms of the vector fields X1 and X2 which are the real and imaginary parts of the (tangential) Levi vector field on d 2; and a function A(p, 8), (a polynomial in 8 for p E d 2), which represents the higher Levi-invariant attached to d 9 . The significance of these to the geometry of d Q can be understood from the following facts: the ball B(p, 8) C d Q (centered at p, of radius 8 in the metric p) when viewed in the appropriate coordinates has width - 8 in the complex tangential directions, but its width is - A(p, 8) in the complementary direction. Thus the volume of the ball is - 82A(p, 8). Among other crucial properties
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