We present results of tests of the evolution of small ``fluid elements'' in
cosmological N--body simulations, to examine the validity of their treatment as
particles. We find that even very small elements typically collapse along one
axis while expanding along another, often to twice or more their initial
comoving diameter. This represents a possible problem for high--resolution uses
of such simulations.Comment: Uses aasms4.sty; accepted for publication in ApJ Letters. Files
available also at ftp://kusmos.phsx.ukans.edu/preprints/ates