Abstract. In this paper, we precisely determine when a crossed product R * G is semiprime or prime. Indeed we show that these conditions ultimately depend upon the analogous conditions for the crossed products R * N of the finite subgroups N of G and upon the interrelationship between the normalizers of these subgroups and the ideal structure of R. The proof offered here is combinatorial in nature, using the A-methods, and is entirely self-contained. Furthermore, since the argument applies equally well to strongly C-graded rings, we have opted to work in this more general context.