The numerical solution of the advection-diffusion problem in the inviscid limit with closed characteristics is studied as a prelude to an efficient high Reynolds-number flow solver. It is demonstrated by a heuristic analysis and numerical calculations that using upstream discretization with downstream relaxation-ordering in a multigrid cycle with appropriate residual weighting leads to an efficient solution process. Upstream finite-difference approximations to the advection operator are derived whose truncation terms approximate ``physical'' (Laplacian) viscosity, thus avoiding spurious solutions to the homogeneous problem when the artificial diffusivity dominates the physical viscosity.