Abstract. The three-nucleon system is studied within the multi-configuration resonating-group method. The model space is spanned by p + d, p + d', and their associated pseudo-inelastic configurations. The results show that, at lower energies less than about 15 MeV, the calculated p + d differential scattering and total reaction cross sections agree well with experiment, suggesting that the use of pseudo-inelastic configurations can yield an adequate description of deuteron direct-breakup processes. At higher energies, the agreement is less satisfactory, owing mainly to the adoption of a relatively small number of pseudo-inelastic configurations in our formulation. The p + d inter-cluster interactions are found to be appreciably odd-even L-dependent and are characteristically different in channel spin S = 23 and 89 states. Specific distortion effects of the deuteron cluster are also studied. For relative orbital angular momentum L = 0, these effects turn out to be small in the S = 23 state but are quite large in the S = 89 state.