This progress report describes our research in studying the in vivo properties of liposomes as a potential drug carrier for trypanocidal agents. The first section discusses the effect of chemical composition, size, and concentration on the degradation of liposomes in the liver of a mouse. The second section describes the effects of various factors on the clearance of liposomes in the blood of mice. The third section is a report on the development of methods of preparing various types of liposomes. The fourth section gives the detail in investigating the methodology of loading In111(3+) and Ga67(3+) to liposomes in a controlled manner.