Simulating the formation of galaxies within the LambdaCDM model is a 
challenge both from the physical and the numerical point of view. 
In recent years there has been a breakthrough in our ability of reproducing 
spiral galaxies with extended disks and limited or negligible bulges, 
and now simulations of small but significant cosmological volumes (~100 Mpc) 
can produce galaxy populations with realistic properties. 
However, a true ab-initio approach is hampered by the wide range of scales 
that needs to be taken into account, given the importance of energetic 
feedback from massive stars and their SNe. With resolution limited to ~kpc 
scales, many important processes must be taken into account through suitable 
sub-resolution models. I will present results from a simulation program 
that we are carrying on in Trieste, discuss the potentialities and limits of 
this approach, and highlight what we can expect in the near future.