Classical transport of particles and heat in field-reversed mirrors is discussed. The X-points (field nulls on axis) are shown to have no deleterious effect on transport; this conclusion is true for any transport model. For an elongated Hill's vortex equilibrium the classical diffusion coefficient is calculated analytically and used to construct an analytic solution to the transport equation for particles or energy; this yields exact results for particle and energy confinement times. These life-times are roughly 3 to 6 times shorter than previous heuristic estimates. Experimentally determined life-times are within a factor of 3 to 4 of our estimates. To assess the impact of these results on reactor designs, the authors construct an analytic reactor model in which neutral-beam input balances ion heat loss. Energy loss due to synchrotron radiation is calculated analytically and shown to be negligible, even with no wall reflection. Formulas are presented which give the reactor parameters in terms of plasma temperature, energy multiplication factor Q, and allowed neutron wall loading. The effect of anomalous resistivity is incorporated heuristically by assuming an anomalous resistivity which is enhanced by a factor A over classical resistivity. For large A the minimum power of a reactor scales as A 11 / 6 . A = 50 gives a reactor design which still seems reasonable, but A = 200 leads to extremely large, high-power reactors.