This document discusses modeling game objects using finite state machines and state diagrams. It provides an example of modeling a monster's states which include idle, moving, attack, hurt, and dead. The modeling process involves two steps: 1) creating an object state diagram to represent the states and transitions, and 2) implementing the model in a game client. Additional sub-states like crawl, walk and run can be added to the moving state. The document also provides an example of implementing a simple desktop calculator using state machines and discusses how to identify the states for the calculator problem.