<P>Lao-tzu's Tao Te Ching, or Book of the Way, is the classic manual on the art of living and one of the wonders of the world. In eighty-one brief chapters, the Tao Te Ching llods at the basic predicatment of being alive and gives advice that imparts balance and perspective, a serene and generous spirit. This book is about wisdom in action. It teaches how wo work for the good with the efforless skill that comes from being in accord with the Tao (the basic principle of the universe) and applies equally to good government and sexual love, to childrearing, business, and ecology.<P>The Tao Te Ching is the most widely traslated book in world literature, after the Bible. Yet the gemlike lucidity of the original has eluded most previous translations, and they have obscured some of its central ideas. Now the Tao Te ching has been rendered into English by the eminent scholar and traslator Stephen Mitchell. Mr. Mitchell's <I>Dropping Ashes on the Buddha </I>is a modern Zen classic, and his translations of Rilke and of the Book of Job have already been called definitive for our time. <P><BR>