A collection of computational fluid dynamics tools and techniques are being developed and tested for application to stage separation and abort simulation for next-generation launch vehicles. In this work, an overset grid Navier-Stokes flow solver has been enhanced and demonstrated on a matrix of proximity cases and on a dynamic separation simulation of a belly-to-belly wing-body configuration. Steady cases show excellent agreement between Navier-Stokes results, Cartesian grid Euler solutions, and wind tunnel data at Mach 3. Good agreement has been obtained between Navier-Stokes, Euler, and wind tunnel results at Mach 6. An analysis of a dynamic separation at Mach 3 demonstrates that unsteady aerodynamic effects are not important for this scenario. Results provide an illustration of the relative applicability of Euler and Navier-Stokes methods to these types of problems.