EXHIBIT 10.29

                                                               EXECUTION VERSION

                    GENERAL RELEASE AND SETTLEMENT AGREEMENT

         This  Settlement  Agreement and Mutual  Release (this  "Agreement")  is
hereby  made  effective  as of the 18th day of July 2003 by and among  Molecular
Diagnostics,   Inc.  ("MDI"),   Azimuth   Corporation   ("Azimuth")  and  Cadmus
Corporation  ("Cadmus")  (each  individually  "a Party"  and  collectively  "the
Parties"), pursuant to the recitals and terms set forth below.

                                    RECITALS

         WHEREAS, MDI has issued warrants to both Azimuth and Cadmus to purchase
an  aggregate  of  3,125,000  shares of MDI common  stock,  par value $.001 (the
"Common Stock"), as described below;

         WHEREAS, a dispute arose between the parties regarding the total number
of shares of MDI Common  Stock  issuable to Azimuth and Cadmus upon  exercise of
the warrants following certain transactions by MDI that diluted the interests of
Cadmus and Azimuth under the terms of the warrants (the "Dispute");

         WHEREAS,  the Parties to this Agreement  have engaged in  negotiations,
and based on their mutual desire to avoid the expense of litigation, have agreed
to resolve  any and all claims and  disagreements  between  them  regarding  the
Dispute under the terms set forth herein and without any admission of liability;

         NOW  THEREFORE,  in  consideration  of the  mutual  covenants  and  the
conditions herein set forth, and for other good and valuable consideration,  the
sufficiency  and receipt of which the Parties  hereby  acknowledge,  the Parties
agree as follows:

         1. Settlement Payments:  In full and complete settlement of the Dispute
between  the  Parties,  and  pursuant to the mutual  releases  set forth in this
Agreement,  the Parties have agreed to: (a) cancel and  terminate  the following
existing  warrant  agreements  and  any  and  all  liabilities  and  obligations
thereunder:

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         Warrant No. 1 AC - Azimuth Corporation/50,000 Shares
         Warrant No. 2 AC - Azimuth Corporation/50,000 Shares
         Warrant No. 3 AC - Azimuth Corporation/1,000,000 Shares
         Warrant No. 4 AC - Azimuth Corporation/1,000,000 Shares
         Warrant No. 5 AC - Azimuth Corporation/500,000 Shares
         Warrant No. 6 CC - Cadmus Corporation/250,000 Shares
         Warrant No. 7 AC - Azimuth Corporation/250,000 Shares
         Warrant No. 8 AC - Azimuth Corporation/25,000 Shares

(collectively,  the "Prior  Warrants"),  and (b) replace the Prior Warrants with
two new  warrant  agreements,  a form of which is  attached  hereto as Exhibit A
(together,  the "New  Warrants"),  which New Warrants will reflect the terms set
forth in Section 2 of this Agreement.

         2. Terms and Allocation of Warrants: The New Warrants shall include the
following  terms:  (a) Cadmus  will be entitled to purchase at any time prior to
July 18, 2008, 3,625,000 shares of MDI Common Stock at a purchase price of $0.30
per share;  (b)  Azimuth  will be entitled to purchase at any time prior to July
18, 2008,  2,875,000 shares of MDI Common Stock at a purchase price of $0.30 per
share; (c) anti-dilution  protection for events  including,  but not limited to,
stock  dividends,   stock  splits  and  other  similar  events  found  in  other
outstanding  warrant  and  convertible  instruments  issued by MDI;  and (d) all
outstanding  indebtedness  owed from MDI to both  Azimuth  and  Cadmus  shall be
forgiven and cancelled.

         3.  General  Release by MDI: As a material  inducement  for Azimuth and
Cadmus to enter into this  Agreement,  MDI, for itself and for each of its past,
present  and future  divisions,  subsidiaries,  corporate  parents,  affiliates,
officers,  directors,  agents,  attorneys,   employees,   partners,  associates,
privies,  controlling  persons,  shareholders,  and  each  of  their  respective
predecessors,  successors,  assigns, insurers and subrogees (the "MDI Parties"),
hereby absolutely and unconditionally releases, remises, and forever discharges:
(i) Azimuth,  and each of its past, present and future divisions,  subsidiaries,
corporate  parents,   affiliates,   officers,   directors,   agents,  attorneys,
employees, partners, associates, privies, controlling persons, shareholders, and
each  of  their  respective  predecessors,  successors,  assigns,  insurers  and
subrogees  (the  "Azimuth  Parties");  and (ii)  Cadmus,  and each of its  past,
present  and future  divisions,  subsidiaries,  corporate  parents,  affiliates,
officers,  directors,  agents,  attorneys,   employees,   partners,  associates,
privies,  controlling  persons,  shareholders,  and  each  of  their  respective
predecessors, successors, assigns, insurers and subrogees (the "Cadmus Parties")
from and against any and all manner of actions,  causes of action, suits, debts,
agreements, promises, damages, judgments, claims, liabilities, losses, expenses,
and demands whatsoever,  direct or indirect, in law or in equity,  whether known
or  unknown,  which any of the MDI  Parties  had,  has or in the future may have
against any of the Azimuth  Parties or Cadmus Parties with respect to any action
or omission  arising out of or relating to the Dispute.


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         4.  General  Release By Azimuth:  As a material  inducement  for MDI to
enter into this Agreement, Azimuth, for itself and for each of the other Azimuth
Parties,  hereby absolutely and unconditionally  releases,  remises, and forever
discharges  MDI and each of the other MDI  Parties  from and against any and all
manner of  actions,  causes  of  action,  suits,  debts,  agreements,  promises,
damages,  judgments,   claims,   liabilities,   losses,  expenses,  and  demands
whatsoever,  direct or indirect, in law or in equity,  whether known or unknown,
which any of the Azimuth  Parties had, has or in the future may have against any
of the MDI  Parties  with  respect to any action or  omission  arising out of or
relating to the Dispute.

         5. General Release By Cadmus: As a material inducement for MDI to enter
into  this  Agreement,  Cadmus,  for  itself  and for each of the  other  Cadmus
Parties,  hereby absolutely and unconditionally  releases,  remises, and forever
discharges  the MDI and each of the other MDI  Parties  from and against any and
all manner of actions,  causes of action,  suits, debts,  agreements,  promises,
damages,  judgments,   claims,   liabilities,   losses,  expenses,  and  demands
whatsoever,  direct or indirect, in law or in equity,  whether known or unknown,
which any of the Cadmus  Parties  had, has or in the future may have against any
of the MDI  Parties  with  respect to any action or  omission  arising out of or
relating to the Dispute.


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<PAGE>

         6.  Non-Admission  of Liability:  Neither this Agreement nor the events
occurring  during the  negotiation of this Agreement  (including all statements,
admissions,  or communications made in connection therewith) shall constitute or
be  considered  admissions  of  liability  or  wrongdoing  by any  Party,  or an
acknowledgment  by any Party of the truth or  correctness  of any other  Party's
contentions or allegations.  The Parties have entered into this Agreement solely
for the purpose of settling the Dispute.  All actions taken and statements  made
by the Parties or their representatives  relating to their participation in this
Agreement, including its development and implementation,  were taken and made in
the context of privileged and confidential dispute resolution negotiations.  The
settlement  shall be of no  evidentiary  effect in any  proceeding,  except with
respect to a  proceeding  between the Parties to enforce any  provision  of this
Agreement.

         7.  Non-Assignment:  Each Party  represents  and warrants to each other
that it has not assigned or otherwise  transferred any claims released herein to
any  non-party  to this  Agreement,  and that  each  Party  will not  assign  or
otherwise  transfer,  or  attempt  to assign or  otherwise  transfer,  any claim
relating to the Dispute to any non-party to this Agreement.

         8.   Entire   Agreement:   This   Agreement   constitutes   the  entire
understanding  among the Parties,  and supersedes  all prior or  contemporaneous
oral or written  understandings,  statements,  representation or promises,  with
respect to the  subject  matter  hereof.  The  Parties  agree that the  recitals
contained on page one of this Agreement are incorporated herein and constitute a
material part of this Agreement.


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<PAGE>

         9. Binding  Effect:  This Agreement and the releases  contained  herein
shall be binding on, and shall inure to the benefit of, the  Parties,  and their
respective past, present and future divisions, subsidiaries,  corporate parents,
affiliates,   officers,  directors,  agents,  attorneys,   employees,  partners,
associates,  privies,  controlling  persons,  shareholders,  and  each of  their
respective predecessors, successors, assigns, insurers and subrogees. Each Party
further agrees that nothing in this Agreement shall operate or be construed as a
release or discharge of any obligation owed by any Party under the terms of this
Agreement  or  preclude  any right,  claim or action by any Party to enforce the
provisions of this Agreement.

         10. Governing Law: This Agreement shall be governed by and construed in
accordance  with  the laws of the  State of  Illinois,  without  regard  to such
jurisdiction's  conflict of laws principles.

         11.  Modification:  This  Agreement  shall not and cannot be  modified,
amended,  altered,  limited  or  supplemented,  except  upon the  execution  and
delivery  of a written  agreement  expressly  referring  to this  Agreement  and
executed by the Parties.

         12.  Severability:  In  the  event  any  provision  contained  in  this
Agreement shall for any reason be held unenforceable,  illegal or invalid,  such
holding shall not effect any other provision hereof.

         13. Costs:  Each party shall bear and pay its own expenses,  costs, and
charges,  including  attorneys' fees, incident to the negotiation,  preparation,
and execution of this Agreement.

         14.  Signature in  Counterparts:  This  Agreement  may be signed by the
Parties in  counterparts,  and shall be fully  enforceable as if all Parties had
signed a single document.


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         15. Acknowledgment:  Each Party acknowledges and represents (a) that it
has read the terms of this Agreement,  (b) that it has been assisted and advised
by counsel  of its choice  with  respect  to this  Agreement,  (c) that it fully
understands  the terms of this  Agreement,  (d) that such Party,  including  the
individual signing on behalf of such Party, has the authority to enter into this
Agreement and bind such Party,  and the execution,  delivery and  performance of
this Agreement have been duly authorized by all necessary action  (including all
corporate  action on its  part),  (e) that it has  entered  into this  Agreement
voluntarily and with full knowledge of the effects and consequences  hereof, and
(f) that this Agreement is made and entered into by such Party without  reliance
upon  any  statement,  representation,  promise,  inducement,  understanding  or
agreement which is not herein expressed or referenced.

         16. Survival:  Each Party acknowledges that the terms of this Agreement
shall survive the execution of the mutual releases set forth herein.

MOLECULAR DIAGNOSTICS, INC.                 AZIMUTH CORPORATION

By:______________________________           By:_________________________________
Its:_____________________________           Its:________________________________

                                            CADMUS CORPORATION

                                            By:_________________________________
                                            Its:________________________________


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                                                               EXECUTION VERSION

                                    EXHIBIT A

                                 FORM OF WARRANT


                                    Exhibit A