The application of the LCD modeling and optimization system (MOUSE-LCD) for the design and development of the new advanced LCD configurations is demonstrated. The proposed new method of LCD optimization can be successfully applied for the design of the new advanced LCD configurations operating in various electrooptical nematic, cholesteric and ferroelectric LC modes, such as TN, STN, ECB, VAN, HAN, pi-cell, book-shelf and others. We have found the conditions, which enable to realize perfect dark and bright states and wide viewing angles in LCDs for various LC physical characteritics, LC orientation in the cell and operating voltage as a function of the parameters of the phase compensators, anti-reflective layers, LC cell thickness and orientation of the polarizers. The optimization module allows for the spectral and angular averaging, thus enabling to produce LCD with wide viewing angles, achromatic (black/white) switching and fast response time. We have also shown, that some important LC elements of fiber optical systems, e.g., polarization controllers and polarization rotators can be designed and optimized. We demonstrate also 2D version, which enables to simulate the optical performance of LCD, as a function of the coordinate parallel to the LC layer. Liquid crystal (LC) structures in high resolution LCDs with a rapid lateral variation of optical parameters (microdisplays, multi-domain LCDs, IPS-LCDs) is characterized taking into account the effects of light diffraction. This software provides the simulation of various experimental tests with fine-structure LC cells. In particular, the simulation of LCD measurements with a polarizing microscope is performed.