-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 LwwpBgc7TqrHDS4tQWxxXri5mwenlP5JvyosQPwPJlPm0qh1TlTiu7AWcMmArN/1
 ZvBmVhnusjdKRIvgRBjbaA==

<SEC-DOCUMENT>0000932214-07-000118.txt : 20070823
<SEC-HEADER>0000932214-07-000118.hdr.sgml : 20070823
<ACCEPTANCE-DATETIME>20070823115647
ACCESSION NUMBER:		0000932214-07-000118
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070821
FILED AS OF DATE:		20070823
DATE AS OF CHANGE:		20070823

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Waye Thom
		CENTRAL INDEX KEY:			0001327217

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31265
		FILM NUMBER:		071074893

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		212-201-6636

	MAIL ADDRESS:	
		STREET 1:		C/O SIGMA CAPITAL ADVISORS, LLC
		STREET 2:		800 THIRD AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVATECH SOLUTIONS INC
		CENTRAL INDEX KEY:			0000852437
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				841035353
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		11403 CRONHILL DRIVE
		STREET 2:		SUITE A
		CITY:			OWING MILLS
		STATE:			MD
		ZIP:			21117
		BUSINESS PHONE:		4109026900

	MAIL ADDRESS:	
		STREET 1:		11403 CRONHILL DRIVE
		STREET 2:		SUITE A
		CITY:			OWING MILLS
		STATE:			MD
		ZIP:			21117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PLANETCAD INC
		DATE OF NAME CHANGE:	20001117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SPATIAL TECHNOLOGY INC
		DATE OF NAME CHANGE:	19960708

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sigma Capital Advisors, LLC
		CENTRAL INDEX KEY:			0001327130
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31265
		FILM NUMBER:		071074891

	BUSINESS ADDRESS:	
		STREET 1:		800 THIRD AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-201-6636

	MAIL ADDRESS:	
		STREET 1:		800 THIRD AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sigma Capital Partners, LLC
		CENTRAL INDEX KEY:			0001327128
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31265
		FILM NUMBER:		071074892

	BUSINESS ADDRESS:	
		STREET 1:		800 THIRD AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-201-6636

	MAIL ADDRESS:	
		STREET 1:		800 THIRD AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>aug2107_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-08-21</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000852437</issuerCik>
        <issuerName>AVATECH SOLUTIONS INC</issuerName>
        <issuerTradingSymbol>AVSO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001327217</rptOwnerCik>
            <rptOwnerName>Waye Thom</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>800 THIRD AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001327128</rptOwnerCik>
            <rptOwnerName>Sigma Capital Partners, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>800 THIRD AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001327130</rptOwnerCik>
            <rptOwnerName>Sigma Capital Advisors, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>800 THIRD AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Purchase Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.15</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-08-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-08-21</value>
            </exerciseDate>
            <expirationDate>
                <value>2017-08-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>6000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>6000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Sigma Capital Advisors, LLC</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Purchase Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.47</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-08-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>18000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-08-21</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-08-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>18000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>18000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Sigma Capital Advisors, LLC</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The securities reported as beneficially owned are owned directly by Sigma Capital Advisors, LLC (&quot;Sigma Advisors&quot;).  Mr. Waye
 and Sigma Capital Partners may be deemed to indirectly beneficially own the securities by virtue of Mr. Waye being the sole
 member of Sigma Partners, which is the managing member of Sigma Advisors.  Mr. Waye and Sigma Partners disclaim beneficial
 ownership of the securities except to the extent of their pecuniary interest therein.</footnote>
        <footnote id="F2">Exercisable to the extent of 1/3 of the number of shares immediately and as to an additional 1/3 of the number of shares on
 each of November 13, 2007 and November 13, 2008.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Thom Waye, By:  Kevin W. Waite, By:  Power of Attorney, /s/Kevin W. Waite</signatureName>
        <signatureDate>2007-08-22</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Sigma Capital Partners, LLC, By:  Kevin W. Waite, Authorized Representative, /s/Kevin W. Waite</signatureName>
        <signatureDate>2007-08-22</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Sigma Capital Advisors, LLC, By:  Kevin W. Waite, Authorized Representative, /s/Kevin W. Waite</signatureName>
        <signatureDate>2007-08-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----